Carbon neutrality efforts have largely focused on tailpipe emissions, but automakers and suppliers are starting to look deep into their supply chains for environmentally friendly solutions. One area that may be ripe for an overhaul is the steel-making process, which depends on the use of coking coal that emits high levels of carbon dioxide. According to the World Steel Association, every ton of steel produced in 2018 emitted on average 1.85 tons of carbon dioxide.  

The Swedish steelmaker SSAB and its partners — iron ore producer LKAB and energy company Vattenfall — say they have found a way to make “fossil-free steel,” substituting clean-burning hydrogen for coking coal to turn iron ore into iron. 

The process, which SSAB calls Hybrit, or Hydrogen Breakthrough Ironmaking Technologym, has two main components: iron ore pellets mined without fossil fuels and sustainably generated hydrogen, which has water as a byproduct.  

SSAB and its CEO Martin Lindqvist are betting big on Hybrit, which remains more costly than conventional steel. But after six years of development, Hybrit is gaining traction among automakers. 

Volvo is one of the first on board, with the Swedish automaker receiving its first test batch of Hybrit steel in 2021. Volvo says that Hybrit can slash a large chunk of carbon dioxide from its production process, with steel and iron accounting for up to 35 percent of overall emissions. Mercedes-Benz and the U.S. truckmaker Oshkosh have also recently signed partnership agreements. 

“We need to do something in the steel industry. We emit 7 to 8 percent of all carbon dioxide globally,” Lindqvist said in October. “We want to show that it is possible, and also to inspire others to take the necessary steps.”