Construction Industry News
It has been announced that Scania will purchase sustainable material from H2 Green Steel, marking a key development in the company's efforts to decarbonise its supply chain. The first order of green steel will be used for the construction of Scania trucks, which is an important step towards reducing the environmental impact of the company's vehicle production. Production of the sustainable steel will start in 2025 at H2 Green Steel's newly established plant in Boden, northern Sweden. Deliveries of the eco-friendly material are planned for 2027.
This comprehensive agreement is a crucial part of Scania's ambitious and pioneering strategy to eliminate carbon emissions from the most polluting production materials and batteries. By 2030, Scania aims to phase out the primary sources of CO2 emissions in its supply chain, including the use of 100 percent green steel, green batteries, green aluminium and green cast iron in its production processes.
Anders Williamsson, Executive Vice President and Head of R&D and Purchasing at Scania, expresses the importance of this first order from H2 Green Steel as follows: "With this first order from our strategic partner H2 Green Steel, we are continuing our progress in minimising the climate impact of our supply chain."
Mark Bula, Commercial Head of Boden Steel at H2 Green Steel, acknowledges Scania's integral role in their operations and says: "Scania has been one of our biggest supporters from day one. Not only to help frame the opportunities for green steel, but also as an early investor in seed capital. Their support and partnership in crafting the value proposition has contributed greatly to our go-to-market strategies. Scania is truly a pioneer in sustainability, being the first in their industry to set science-based goals in line with the Paris Agreement. Now all of 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 include Scania's production in Europe, they will gradually expand to their production in China and Latin America.
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