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Volvo Group Partners with H2 Green Steel to Source Low-Carbon Steel for Commercial Vehicles

ESGVolvo Group Partners with H2 Green Steel to Source Low-Carbon Steel for Commercial Vehicles

The Volvo Group has entered into an agreement with Swedish startup H2 Green Steel to purchase low-carbon steel for use in its commercial vehicles, with deliveries set to begin in 2026. H2 Green Steel is developing a green steel plant in Boden, Sweden, that uses green hydrogen to remove oxygen from iron oxide, significantly reducing CO2 emissions. The company aims to begin production in 2025, with plans to produce 5 million tons of nearly fossil-free steel by 2030. Volvo is the latest automotive company to source steel from H2 Green Steel, following Scania, Mercedes-Benz, and BMW.

This agreement supports Volvo’s goal to achieve a net-zero greenhouse gas emission value chain by 2040, which it set in 2021. The company has also sourced fossil-free steel through its collaboration with steel manufacturer SSAB.

Steel production is a significant source of CO2 emissions globally, and finding low-carbon alternatives is crucial for reducing the environmental impact of various industries. Collaborations with companies like H2 Green Steel enable automotive manufacturers to make progress toward sustainability targets.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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