Scania to procure “fossil-free” steel from SSAB starting in 2026
By Bradley Osborne - 5th January 2024
Fossil-free steel produced by SSAB
Sweden – In November, Scania AB, a subsidiary of the Traton Group based in Södertälje, Sweden, signed a Letter of Intent with steelmaker SSAB AB of Stockholm to procure only steel made without burning fossil fuels by 2030.
SSAB will begin delivering “fossil-free” steel to Scania starting in 2026, initially in small quantities before ramping up to 100%. The steel will be produced using SSAB’s ‘Hybrit’ technology, developed over the past seven years together with state-owned mining and energy companies, LKAB and Vattenfall AB. The technology works by replacing coking coal with hydrogen in the iron ore reduction process. The by-product of this method is water instead of carbon dioxide, thus entirely eliminating greenhouse gas emissions from the steelmaking process (provided that electricity from renewable sources is also used).
