Scania gives Arla the keys to sustainable transport

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Scania Group Press Release  /  October 11, 2018

Symbolic presentation heralds deal to supply dairy giant with completely fossil-free fleet.

Like Scania, global dairy company Arla has been at the forefront of sustainable business initiatives in recent years, and the two have become willing partners in the transport and logistics industry’s efforts to combat climate change.

Arla, which is a farmer-owned cooperative involving 11,000 farms in seven European countries, recently took a step further towards a fossil-free future with Scania’s symbolic handover of vehicle keys to signify a deal to provide 48 vehicles powered by rapeseed methyl-ester (RME), a form of biofuel that emits around two-thirds less carbon dioxide than diesel.

Fossil free by 2020

The fossil-free fleet of Scania trucks will be supplied to Arla’s Swedish distribution units in Järfälla, Linköping, Jönköping, Gothenburg, Örebro, Ronneby and Visby in 2019 and 2020. Arla already runs vehicles on RME, hydrogenated vegetable oil (HVO) and Swedish-produced ethanol. Scania and Arla, have also worked with Lantmännen and ethanol producer SEKAB on a comprehensive concept, called Etha, to facilitate Swedish industry’s switch to fossil-free transport.

“Arla has taken up the challenge of becoming fossil free in 2020, which is far more ambitious than the minimum required by the European Union timescale. Thanks to Scania’s ability to deliver vehicles that can run on alternative fuels, we are happy to say that we will get there,” says Berne Carlson, the vehicle manager at Arla.

Fredrik Lundström, Fleet Sales Manager at Scania Sverige, adds: “Scania can provide vehicles and engines for all types of alternative fuels. While one type of fuel is not necessarily the solution for all, the conditions of each region, such as access and infrastructure, always influence what type of alternative fuel fits best. In this case, RME is the right fit and we’re delighted to help Arla in its efforts to become fossil free.”

The advantages of RME fuel

As a biofuel, RME, derived from the bright yellow flowering plant rapeseed, can cut carbon dioxide emissions by up to 66 percent. In January 2018, the Swedish fiscal authorities recognised the role the fuel can play in cutting emissions when it confirmed RME’s continuing tax exempt status.
In turn, this is making RME more cost-competitive and having a positive effect on its availability. Since the authorities’ decision, sales of the biofuel have been performing strongly.

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