Less than a year since unveiling its first ever machine made with fossil-free steel, Volvo Construction Equipment (CE) has delivered the first fossil-free unit – an A30G articulated hauler - to its long-time client, NCC.
The machine was handed over by President of Volvo CE Melker Jernberg in June 2022, at a ceremony hosted by LeadIt – the Leadership Group for Industry Transition – in conjunction with the United Nations environmental meeting Stockholm +50. The ceremony was attended by US Special Presidential Envoy to Climate, John Kerry, and Swedish Minister for Climate, Annika Strandhäll.
While commercial introduction is expected to be gradual, this first handover marks an important milestone in Volvo CE’s ambition to drive industry transformation towards global climate goals, the company said. The A30G is produced at Volvo CE’s Braås facility in Sweden, using the existing manufacturing process, with fossil-free steel from Swedish steel company SSAB.
“We are sure that to succeed in decarbonizing the construction industry, actors in the value chain will need to collaborate and act,” Jernberg said.
“Thanks to our strong partnerships with other driven and forward-thinking companies, we are now able to lead the change towards fossil-free construction and be the first to deliver a machine built using fossil-free steel to a customer. Turning commitments into actions is key to building the world we want to live in.”
CEO and President of NCC, Tomas Carlsson, said his firm shares the same commitment in contributing to sustainable development.
“We are working determinedly and systematically to reach that target, which includes selecting machines that live up to our high demands. As demonstrated in this great example, it takes strong and proactive partnerships between several players to make the sustainable shift possible."
Fossil-free steel was the product of a collaboration between steel manufacturer, SSAB; mining company, LKAB and energy company, Vatenfall; all Swedish firms. The production of conventional steel requires iron ore to be converted into iron by removing oxygen, which is typically achieved via a blast furnace process and coal. These processes are unsustainable and produce plenty of greenhouse gas emissions.
The three companies worked together to develop a method, HYBRIT (Hydrogen Breakthrough Ironmaking Technology), that uses hydrogen instead of the blast furnace process and coal to turn iron ore into iron for steel making.
The HYBRIT technology involves a direct reduction process where hydrogen that is produced from fossil-free energy sources is used. Instead of carbon dioxide, water vapor is formed.
For Volvo CE, the move to fossil-free steel forms part of its plan to achieve net-zero greenhouse gas emissions by 2040. Alongside the electrification of its machines, the company recognizes the importance of reducing its carbon footprint across its entire value chain. This includes the raw materials used in its products, of which steel is a major component.
The production using fossil-free steel in Volvo CE’s machines and components will be gradual and depend on aspects such as steel availability.