H2 Green Steel to supply Volvo Group with near-zero emissions steel
Volvo Group has taken a step forward in its goal of achieving a net zero GHG emission value chain by 2040 with a collaboration with H2 Green Steel. Under the agreement, Volvo Group will purchase near-zero emission steel from H2 Green Steel's new Boden, Sweden, plant. The start of production is planned for the end of 2025 with deliveries to Volvo Group starting mid 2026.
As commercial vehicles increasingly run on electrified solutions – reducing the emissions when the product is in use – Volvo says that the environmental footprint from the supply network and production becomes increasingly important.
"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 decarbonized materials is key to advancing our progress in sustainable transport and infrastructure solutions," says Andrea Fuder, chief purchasing officer of Volvo Group.
Steel is one of the main materials in the manufacturing of trucks, buses, and construction machines. Near-zero emission steel focuses on reducing emissions to a point where the impact on the environment is significantly minimized 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 percent 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.
"The commercial vehicle industry has actively been driving the demand for green steel, validating the market interest. When an undeniable large player like Volvo Group, working at the forefront of sustainable change, places a customer order it's a clear sign of confidence in both our company and our product," says Henrik Henriksson, H2 Green Steel's CEO.