SSAB and Scania agree on far-reaching steel decarbonisation plan

SSAB and Scania have signed a letter of intent to decarbonise all steel deliveries from SSAB to Scania’s heavy-duty vehicles in 2030. Deliveries of SSAB’s Fossil-free steel is targeted to ramp up rapidly from smaller amounts starting in 2026 and will be key in the shift towards a sustainable transport system.

SSAB is Scania’s main supplier of steel for its vehicles. The new deal, a next step in the long-standing relationship, caters for radically lowered climate emissions. The 100 percent ambition for decarbonised deliveries is among the boldest of intentions agreed between SSAB and a customer. It moreover marks an ambitious plan within the First Movers Coalition, where Scania and SSAB are members to reduce the carbon footprint in hard-to-abate sectors. Through this partnership, Scania and SSAB are committed to use their purchasing power to create early markets for innovative clean technologies.

“We are truly looking forward to ramping up the deliveries of our fossil-free steel, thereby contributing to more sustainable value chains. Fossil-free 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,” says Martin Lindqvist, CEO at SSAB.

“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,” says Christian Levin, CEO at Scania.

Scania has outlined an industry-leading strategy to, by 2030, significantly reduce the carbon emissions within four ‘hotspots’, constituting approximately 80 percent of the supply chain emissions: batteries, steel, aluminium and cast iron. The supply chain decarbonisation strategy and targets initially comprises Scania’s production in Europe but will gradually be extended to its production in China and Latin America.

SSAB plans to deliver its Fossil-free steel to the market at commercial scale in 2026 and for its operations to be largely fossil-free around 2030. SSAB Fossil-free steel is manufactured using the HYBRIT technology, which replaces the coking coal traditionally used for iron ore-based steelmaking with fossil-free electricity and hydrogen. The by-product is water instead of carbon dioxide.