Volvo emphasised that steel is a key component in the production of trucks, buses and construction machinery, and said the agreement with H2 Green Steel is an important step towards the goal of net zero greenhouse gas emissions by 2040.
H2 Green Steel is building a new plant in northern Sweden and plans to produce steel with green hydrogen that does not use fossil fuels, reducing carbon dioxide emissions by up to 95% compared to conventional steel production. Under its contract, Volvo plans to start producing steel by the end of 2025, with deliveries starting in mid-2026.
As a member of the First Movers Coalition, Volvo has committed to ensuring that at least 10 per cent of all steel it purchases is net zero emission by 2030.
Volvo's supply agreement is considered an important step towards accelerating the transition to net zero emissions. However, financial details were not disclosed.