Volvo Group’s Volvo Construction Equipment (Volvo CE) announced today that it has become the first manufacturer in the world to deliver a construction machine made with fossil-free steel to a customer.

The machine, A30G articulated hauler, was produced at Volvo CE’s Braås facility in Sweden, with fossil-free steel from Sweden-based global steel company SSAB. The hauler was handed over by Volvo CE President Melker Jernberg to long-standing customer Swedish construction company NCC.

Jernberg said:

“We are sure that to succeed in decarbonizing the construction industry, actors in the value chain will need to collaborate and act. 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.”

Steelmaking is one of the biggest emitters of CO2 globally, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels.  The announcement marks the latest step in the collaboration launched last year between Volvo and steel manufacturer SSAB, aimed at producing vehicles built with fossil-free steel. SSAB announced the first delivery of fossil-free steel to Volvo in August 2021.

Martin Lindqvist, CEO and President of SSAB, said:

“I am happy and proud to collaborate with Volvo Group and NCC as forerunners in decarbonization. Together, we hope to inspire others, so that we strengthen the competitiveness of sustainable solutions and enable the objectives of the Paris agreement.”

The announcement also follows the launch of different sustainability targets for both SSAB and Volvo. Last year, Volvo Group announced a goal to achieve net zero value chain emissions by 2040 along with other climate targets. In June 2021, SSAB pledged to be the first steel company worldwide to use hydrogen and electricity-based HYBRIT technology to bring fossil-free steel to the global market by 2026.

Tomas Carlsson, CEO and President of NCC, said:

 “NCC has a firm commitment to contribute 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.”