Scania and SSAB commit to 100% fossil-free steel deliveries by 2030

Scania and SSAB signed a letter of intent to eliminate carbon emissions from all steel deliveries to Scania's heavy-duty vehicles by 2030, with fossil-free steel deliveries beginning in 2026. As green steel commercialises, Indian steel producers and manufacturers face mounting competitive and decarbonisation pressure.

Scania and SSAB signed a letter of intent to eliminate carbon emissions from all steel deliveries to Scania's heavy-duty vehicles by 2030, with SSAB's Fossil-free steel deliveries commencing in smaller quantities from 2026. Scania's strategy targets carbon emission reductions in four major supply chain hotspots by 2030, covering about 80% of supply chain emissions: batteries, steel, aluminium and cast iron. SSAB aims to bring fossil-free steel to commercial scale by 2026 and make operations predominantly fossil-free around 2030.

The agreement affects the steel and heavy vehicle manufacturing sectors. SSAB's Fossil-free steel uses HYBRIT technology, replacing coking coal in iron ore-based steelmaking with fossil-free electricity and hydrogen, producing water instead of carbon dioxide as a by-product. The fossil-free steel maintains the same high quality and technical properties as traditional steel and remains recyclable. Scania's supply chain decarbonisation strategy initially focuses on European production, with gradual extensions planned for its facilities in China and Latin America.

Steel producers and manufacturers should monitor the 2026 start of SSAB's commercial-scale fossil-free steel deliveries and its target of predominantly fossil-free operations around 2030. Companies should track how green steel quality and recyclability match conventional steel, signalling competitive shifts in heavy transport supply chains. Indian steel producers and vehicle manufacturers can study HYBRIT-based hydrogen steelmaking and supply chain hotspot strategies as benchmarks for decarbonising emission-intensive materials amid tightening global expectations on embedded carbon.

Key figure — Decarbonisation scope: four supply chain hotspots covering about 80% of emissions by 2030