OSLO (Reuters) - Swedish truck maker Scania will switch to using steel made without carbon emissions in its heavy-duty vehicles before the end of the decade, it said on Monday.
Scania, owned by Volkswagen (ETR:VOWG_p)'s Traton, said it will publish on Tuesday a letter of intent to buy steel made without use of fossil fuels from Swedish metals maker SSAB from 2026, with deliveries gradually rising until 2030.
"Scania's purpose is to drive the shift towards a sustainable transport system," CEO Christian Levin said in a statement, adding that the truck maker was taking action across its value chain to cut emissions.
The company did not say how much steel it would buy and did not reveal the cost.
SSAB is investing heavily in new production methods to eliminate carbon dioxide emissions from its steel production, such as replacing traditional coking coal with zero-carbon electricity and hydrogen.
The metal has the same quality and technical properties as traditional steel, including when recycled, according to SSAB.