Volvo Group has announced that under its long-term agreement with H2 Green Steel, it will purchase near zero emission steel from the steel maker's new plant in Boden in Northern Sweden. The collaboration with H2 Green Steel for near-zero emission steel is another step forward on the continued journey towards a net zero GHG emission value chain by 2040. The start of production is planned for the end of 2025, with deliveries to Volvo Group starting in mid-2026.
As commercial vehicles increasingly run on electrified solutions - reducing the emissions when the product is in use - the environmental footprint from the supply network and production becomes increasingly important.
Andrea Fuder, Chief Purchasing Officer, Volvo Group, said, 'Collaborations which support our work to reduce emissions are crucial on the path towards net zero. Steel is a big contributor to the footprint of our products, and working together with both established and new players for developing decarbonised materials is key to advancing our progress in sustainable transport and infrastructure solutions.”
Steel is one of the main materials in manufacturing trucks, buses and construction machines. Near zero emission steel focuses on reducing emissions to a point where the environmental impact is significantly minimised if not entirely eliminated. A commitment set by the First Movers Coalition, of which Volvo Group is a founding member, is to have at least 10% of all steel purchased per year to be near zero emissions (as per FMC definition) by 2030. Supply agreements such as this are important contributions towards accelerating the transition towards net zero.