Volvo CE delivers North America’s first machine made using fossil-free steel

• The machine, an A30G articulated hauler, has been purchased by Pennsy Supply Inc, a CRH company and long-standing Volvo CE customer, for use at its East Petersburg Quarry in Pennsylvania, USA.
• The hauler was produced by Volvo CE using fossil-free steel supplied by steelmaker SSAB.
• The handover today to Pennsy Supply is another milestone in Volvo CE’s path towards net zero in our value chain by 2040.

Volvo CE celebrated another important milestone in its ambition to drive transformation in our industry towards global climate goals with the handover today to its second customer of a machine made using fossil-free steel.

The A30G articulated hauler was handed over by President of Volvo CE, Melker Jernberg, to Scott Parson, President Americas Materials at CRH – a long-standing customer of Volvo CE – at Volvo Group’s CONEXPO press conference.

Melker Jernberg says: “At Volvo CE, we believe partnership is the new leadership. The handover today to Pennsy Supply demonstrates what can be achieved when we work together with like-minded and forward-thinking partners who share our vision and commitment to sustainability and want to lead our industry to change.”

Swedish steel manufacturer SSAB produced the fossil-free steel using a completely new technology with fossil-free electricity and hydrogen. The result is a significantly lower climate impact in SSAB’s production process – an at least 90% reduction in CO₂ emissions - and an important step towards a net-zero emissions value chain.

Scott Parson, President Americas Materials at CRH, comments: “No business can solve the complex challenges such as climate change alone. We need to actively partner with key players throughout our value chain to innovate and create new business solutions. Volvo and SSAB have converted emerging technology in the steel industry into a working model of what the future will look like. We are delighted to be the first recipient of this technology in the US.”

Big actors in the construction industry have a key role to play in leading the industry’s efforts to lower its carbon footprint. Pennsy Supply Inc is part of the CRH group of companies which is the leading provider of building materials solutions that build, connect and improve our world - with over 3,000 locations in 29 countries. Like Volvo CE, the CRH group has Science-Based Target commitments. It aims to be a net-zero business by 2050 and is targeting a 30% reduction in absolute group-wide emissions by 2030. Pennsy Supply Inc, A CRH Company will use the fossil-free A30G at its East Petersburg Quarry in Pennsylvania.

8% of global CO2 emissions come from steel production

Steel is a major component of Volvo CE machines. However, for every ton of steel produced, around 1.9 tons of CO2 is emitted. To achieve its Science-Based Targets and reach net-zero by 2040, Volvo CE recognizes the importance of reducing its carbon footprint across its entire value chain, alongside the electrification of its machines.

Volvo Group’s journey towards fossil-free steel

In October 2021, Volvo Group unveiled the world’s first vehicle made from fossil-free steel. Then in May 2022, Volvo Trucks started to introduce fossil-free steel into parts of its range. In June 2022, Volvo CE became the first manufacturer in the world to deliver a construction machine made with fossil-free steel to a customer. The company will continue to introduce production using fossil-free steel into its machines and components, dependent on aspects such as steel availability.