Volvo, a leading truck maker, has announced a significant long-term purchase agreement with H2 Green Steel. This collaboration aims to support Volvo’s commitment to achieving near-zero greenhouse gas emissions in its value chain by 2040.
Steel plays a crucial role in the manufacturing of trucks, buses, and construction machines. By partnering with H2 Green Steel, Volvo takes another step forward in its sustainability journey. H2 Green Steel is in the process of constructing a plant in northern Sweden. Their innovative production method involves replacing coal with green hydrogen, which is generated using fossil-free energy sources. This switch is expected to reduce carbon dioxide emissions by an impressive 95% compared to traditional steelmaking practices.
Under the agreement, H2 Green Steel plans to begin supplying steel to Volvo at the end of 2025, with deliveries commencing in mid-2026. This development aligns with the commitment made by the First Movers Coalition, of which Volvo Group is a founding member. The coalition aims for at least 10% of all steel purchased annually to have near-zero emissions by 2030.
This partnership marks a significant contribution to accelerating the transition toward a net-zero future. Both companies are actively supporting sustainable practices and taking tangible steps to reduce environmental impact. Financial details of the agreement were not disclosed.