Scania's initial green steel order advances decarbonised supply chain

30 Jun 2023 CW Team

This extensive agreement forms a crucial component of Scania's ambitious and pioneering strategy to eliminate carbon emissions originating from its most polluting production materials and batteries. By 2030, Scania aims to phase out the primary sources of CO2 emissions in its supply chain, which includes utilising 100 per cent green steel, green batteries, green aluminium, and green cast iron in its manufacturing processes.

An additional significant aspect of Scania's endeavours is its participation as a partner in the First Movers Coalition, an initiative aimed at encouraging companies to increase their procurement of low-carbon products in sectors that pose challenges for decarbonisation. This new contract with H2 Green Steel will enable Scania to fulfill its commitment to the coalition by procuring substantial quantities of green steel. Given that approximately four tons of steel are utilised for the production of each truck, the utilisation of green steel has the potential to make a considerably positive impact on the environment.

Anders Williamsson, the Executive Vice President and Head of R&D and Purchasing at Scania, expresses the significance of this initial order from H2 Green Steel, stating, "With this first order from our strategic partner H2 Green Steel, we are continuing our progress towards minimizing the climate impact from our supply chain."

Mark Bula, the Commercial Head of Boden Steel at H2 Green Steel, acknowledges Scania's integral role in their operations, saying, "Scania has been one of our biggest supporters from day one. Not only in helping frame the opportunity for green steel but also as an early seed capital investor. Their support and partnership in crafting the value proposition has contributed massively to our go-to-market strategies. Scania is truly a pioneer in sustainability and was first in their sector to set Science-Based Targets in line with the Paris Agreement. Now all our forward leaning off-take customers are doing the same."

It is important to note that while the supply chain decarbonisation strategy and targets initially encompass Scania's production in Europe, they will gradually extend to encompass their production in China and Latin America.

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It has been announced that Scania will be purchasing sustainable material from H2 Green Steel, marking a significant development in the company's efforts to decarbonise its supply chain. The first order of green steel will be used for building Scania trucks, representing a major stride towards reducing the environmental impact of the company's vehicle manufacturing. Production of the sustainable steel will commence in 2025 at H2 Green Steel's newly established facility in Boden, located in northern Sweden. Deliveries of the eco-friendly material are scheduled for 2027. This extensive agreement forms a crucial component of Scania's ambitious and pioneering strategy to eliminate carbon emissions originating from its most polluting production materials and batteries. By 2030, Scania aims to phase out the primary sources of CO2 emissions in its supply chain, which includes utilising 100 per cent green steel, green batteries, green aluminium, and green cast iron in its manufacturing processes. An additional significant aspect of Scania's endeavours is its participation as a partner in the First Movers Coalition, an initiative aimed at encouraging companies to increase their procurement of low-carbon products in sectors that pose challenges for decarbonisation. This new contract with H2 Green Steel will enable Scania to fulfill its commitment to the coalition by procuring substantial quantities of green steel. Given that approximately four tons of steel are utilised for the production of each truck, the utilisation of green steel has the potential to make a considerably positive impact on the environment. Anders Williamsson, the Executive Vice President and Head of R&D and Purchasing at Scania, expresses the significance of this initial order from H2 Green Steel, stating, With this first order from our strategic partner H2 Green Steel, we are continuing our progress towards minimizing the climate impact from our supply chain. Mark Bula, the Commercial Head of Boden Steel at H2 Green Steel, acknowledges Scania's integral role in their operations, saying, Scania has been one of our biggest supporters from day one. Not only in helping frame the opportunity for green steel but also as an early seed capital investor. Their support and partnership in crafting the value proposition has contributed massively to our go-to-market strategies. Scania is truly a pioneer in sustainability and was first in their sector to set Science-Based Targets in line with the Paris Agreement. Now all our forward leaning off-take customers are doing the same. It is important to note that while the supply chain decarbonisation strategy and targets initially encompass Scania's production in Europe, they will gradually extend to encompass their production in China and Latin America. Also read: NMDC to invest in first gold block 16 states receive Rs 560.41 billion for capital investment

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