World’s first fossil-free steel vehicle built

Volvo has unveiled the world’s first truck made of 100 percent fossil fuel-free steel in a bid to cut the amount of emissions, water and hazard waste used to make the building material. At the unveiling, Volvo announced that more will follow in 2022 as part of the company’s journey to reach net zero emissions by 2050.

The four-wheeled, autonomous vehicle is fully electric, featuring a giant load carrier at the top that makes it ideal for quarrying and mining, according to Volvo.

Made in collaboration with Swedish company SSAB – which specialises in transforming raw materials into steel – the fossil fuel-free steel is formed using hydrogen breakthrough ironmaking technology (HYBRIT), which uses electricity from renewable sources to create the clean-burning gas, instead of coal and coke.

In 2016, SSAB, LKAB and Vattenfall created HYBRIT, with the aim of developing a technology for fossil-free iron and steelmaking. In June 2021, the three companies were able to showcase the world’s first hydrogen-reduced sponge iron produced at HYBRIT’s pilot plant in Luleå. This first sponge iron has since been used to produce the first steel made with this breakthrough technology.

“Industry and especially the steel industry create large emissions but are also an important part of the solution. To drive the transition and become the world’s first fossil-free welfare state, collaboration between business, universities and the public sector is crucial. The work done by SSAB, LKAB and Vattenfall within the framework of HYBRIT drives the development of the entire industry and is an international model,” said Ibrahim Baylan, minister of Trade and Industry of Sweden.

The goal of the three companies is to deliver fossil-free steel to the market and demonstrate the technology on an industrial scale as early as 2026. Using HYBRIT technology, SSAB has the potential to reduce Sweden’s total carbon dioxide emissions by approximately 10 per cent and Finland’s by approximately seven per cent.

“We’ll be converting to electric arc furnace in Oxelösund as early as 2025. This is the first production site within SSAB to make the transition, and it means that we’ll already be cutting large amounts of carbon dioxide emissions then. This is a major responsibility, one that we’re proud to shoulder, and it brings great opportunities to the region,” says Johnny Sjöström, head of SSAB Special Steels Division.

“The first fossil-free steel in the world is not only a breakthrough for SSAB, it also represents proof that it’s possible to make the transition and significantly reduce the global carbon footprint of the steel industry. We hope that this will inspire others to also want to speed up the green transition,” said Martin Lindqvist, president and CEO of SSAB.

“It’s a crucial milestone and an important step towards creating a completely fossil-free value chain from mine to finished steel. We’ve now shown together that it’s possible, and the journey continues. By industrializing this technology in the future and making the transition to the production of sponge iron on an industrial scale, we will enable the steel industry to make the transition. This is the greatest thing we can do together for the climate,” said Jan Moström, President and CEO of LKAB.

A move toward green steel is an important step for Volvo Group, as well as for the transport and infrastructure industries as a whole, particularly considering that around 70 percent of a truck’s weight comes from steel and cast iron, with the figure for Volvo machines even higher. This first concept machine, produced at Volvo CE’s facility in Braås, is just the start, with smaller-scale series production planned by 2022, and mass production set to follow.

Melker Jernberg of Volvo said at the unveiling: “Our ambition is to have fossil-free steel used across all our products, with a step-by-step approach. This machine is proof that we really can make fast progress, when we work together in strong partnerships, when we are determined to act, and we enable our skilled people to contribute to building the world we want to live in. Not only for our generation, but for generations to come. Our team in Braås is understandably proud to help make this innovation happen.

“This initiative with SSAB sets the benchmark for a fossil-free future. Just as the nations of the world come together at COP26 to address climate change, so too must organizations and industries work in collaboration to develop innovative new solutions for a greenhouse gas emission free future. Volvo Group is committed to pioneering partnerships such as this with SSAB to develop attractive, safe and efficient new vehicles and machines that pave the way for a more sustainable transport and infrastructure system adopted for the future.”

With a commitment to be climate-neutral and achieve net zero value chain greenhouse gas emissions by 2040, Volvo Group said it is on the path towards developing sustainable transport and infrastructure solutions of the future. Along with the electrification of its vehicles and machines, Volvo is determined to reduce the carbon footprint of its entire supply chain and this latest innovation is one step forward on this path.

“Having the world´s first actual vehicle made using SSAB´s fossil-free steel is a true milestone. Our collaboration with Volvo Group shows that green transition is possible and brings results,” says Martin Lindqvist of SSAB. “Together, we will continue reducing climate impact all the way to the end customer while ensuring that our customers get high-quality steel. We look forward to continuing to work with Volvo Group in research and development to produce more fossil-free steel products.”

“It’s very pleasing that the HYBRIT partnership is once more taking an important step forward and that SSAB can now produce the first fossil-free steel and deliver to the customer. This shows how partnerships and collaboration can contribute to reducing emissions and building competitiveness for industries. Electrification is contributing to making fossil-free living possible within one generation,” says Anna Borg, president and CEO of Vattenfall.

Back in June 2020, Volvo Cars announced it was teaming up with Swedish steel maker SSAB to jointly explore the development of fossil-free, high quality steel for use in the automotive industry.

The collaboration makes Volvo Cars the first car maker to work with SSAB and its HYBRIT initiative, the steel industry’s most ambitious and advanced projects in fossil-free steel development.

The global steel industry accounts for around 7 per cent of global direct carbon emissions, due to the fact that the industry is currently dominated by an iron ore-based steel making technology, using blast furnaces depending on coking coal.

For Volvo Cars, the CO2 emissions related to steel and iron production for its cars amount to around 35 per cent in a traditionally powered car and 20 per cent in a fully electric car of the total CO2 emissions from the material and production of the components going into the car.

The collaboration with SSAB is the latest initiative that supports Volvo Cars overall climate action plan, one of the most ambitious in the car industry. The centrepiece of the plan is Volvo Cars’ ambition to be a fully electric car brand by 2030, with only pure electric cars in its line-up.

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