Scania and SSAB set to decarbonise steel by 2030

By 2030, Scania and its long-time steel supplier SSAB have agreed to completely decarbonise the steel used in making heavy-duty vehicles. From 2026 Scania’s vehicles will start using SSAB’s Fossil-freeTM steel and by the end of the decade, all of the steel used in its trucks will be 100 percent fossil free. 

Christian Levin, CEO at Scania, said: “I’m glad and proud that we have reached this agreement. Scania’s purpose is to drive the shift towards a sustainable transport system. To fulfil that purpose, we take action across the value chain together with partners as SSAB, who is at the forefront in the transition to a sustainable steel industry.”

The agreement comes as part of Scania’s strategy to significantly reduce its carbon emissions by 2030. This covers four main areas which account for around 80 percent of supply chain emissions. The main culprits are batteries, steel, aluminium and cast iron. 

Martin Lindqvist, CEO at SSAB, said: “We are truly looking forward to ramping up the deliveries of our fossil-free steel, thereby contributing to more sustainable value chains. Fossil-freeTM steel will be a game-changer in heavy transport. It has the same high quality and technical properties as traditional steel. And, while being produced in a sustainable way, it can also be recycled just like steel has always been.”

Alongside providing Fossil-freeTM steel to market on a commercial scale from 2026, come 2030 SSAB plans to be a largely fossil free operation. SSAB uses HYBRIT technology to produce its low-emission steel. Electricity from renewable sources and hydrogen is used to power the process which replaces traditional coking coal used for iron ore-based steelmaking. 

SSAB is a Nordic and US-based steel company with production locations in Sweden, Finland and America. It’s the main steel supplier for Scania, who in 2022 delivered 80,238 trucks, 4,994 buses and coaches, and 13,400 industrial and marine engines.