Scania Australia exhibited at ReGen 2025, Australia’s Circular Resource Expo, showing off its low emission truck technology, but also demonstrating how deeply the global truck and bus maker is committed to sustainability and circularity.
On display was a 2025-model year 460 P 8×4 rigid truck fitted with a HIAB hooklift, ideal for urban waste bin transportation. The truck was fitted with the latest generation six-cylinder Scania Super engine that has reduced fuel consumption and emissions by at least 8% compared with Scania’s previous already highly efficient engines.
Scania has been devoted to reducing fuel consumption and thus emissions for decades, partly driven by the very high price of fuel in Europe. During the past 20 years the focus has very much been on emissions reduction, initially making internal combustion engines work more efficiently, and therefore generating fewer noxious emissions, and latterly switching to battery-driven vehicles with zero tailpipe emissions.
While battery electric vehicles, charged via renewables will deliver a very clean transport solution, the reality in Australia in the short and medium term is that diesel continues to play an overwhelming role powering transport and logistics. But Scania has a technical solution to cutting CO2 emissions by up to 85% simply by employing (drop-in) renewable fuels such as biodiesel and HVO to power its trucks and buses. Most Scania engines on offer in Australia can run on B100 and HVO simply by switching out regular pump diesel for the renewable fuel.
There is no significant infrastructure investment, council approvals or changes to operating processes required, just securing a source of the renewable fuel, which is becoming easier thanks to developments by several Australian-based renewable fuel providers.
Many transport operators are now investigating low CO2 emission renewable fuels as the roll-out of battery electric vehicles remains in the slow lane in Australia. Although truck companies such as Scania have done the hard work to create viable battery electric trucks and buses suitable for the Australian urban market, ultra long-distance transport of heavy loads on our roads remains tantalisingly out of reach, particularly due to the immaturity of the recharging network countrywide and a lack of government incentives as seen in other more progressive markets.
That is why the Scania solution of renewable fuels such as biodiesel and HVO can bridge the gap between today’s Euro 6 emission compliant diesel engines and tomorrow’s zero tailpipe emission battery electric vehicles.
Low emission efficiency in operation is not the sole focus for Scania, as it meets its obligations under the latest environmental reduction schemes. These are focused on low emission component manufacturing and vehicle assembly, areas where Scania for many years has expended much energy.
Now Scania is leading the world by installing remanufactured gearboxes into some new trucks on its production line in Sweden, giving a second life to refurbished products, reducing consumption of natural resources and the energy needed to produce major components. Reusing 50% of the parts in the gearbox cuts carbon emissions by up to 45% for the unit.
The ‘remanufactured’ gearbox parts are subjected to the same rigorous testing as new parts, to make sure they meet Scania’s quality and performance standards. Scania has long been remanufacturing key components and selling them back into the aftermarket as ‘remanufactured’, but now the company is fitting these parts to new production line vehicles. Up to now, remanufacturing in the European automotive sector has been confined to the aftermarket, which accounts for only 1.1% of new manufacturing according to a report by the European Remanufacturing Network.
Another piece of enterprising innovation is found at Scania’s factory in São Bernardo do Campo, Brazil. Here, a proportion of virgin materials are replaced by recycled PET plastic in the manufacture of front grille components. This reduces environmental impact but also transforms the perception of waste, saving around 1.5 million PET bottles from landfills or incinerators annually, based on production of 30 thousand vehicles per year. The CO2 emissions saving is around 62 tonnes annually, with 16% less energy required compared with using 100% virgin materials.
Scania is also aiming to turning 20,000 tonnes of used sand from its foundry into useful mortar, rather than sending it to landfill. Again, the saving of virgin materials will enhance circularity at both Scania and the mortar maker.
Scania’s clothing ranges are made from recycled plastics woven into polyester garments, while organically grown cotton is used for T-shirts, etc. Scania is constantly looking for alternatives when it comes to raw materials. Scania uses a mix of organic cotton and recycled materials, even using old coffee grounds, in its garments’ manufacture. Some of Scania Brazil’s worn-out work clothes made form cotton and polyester are being reworked into insulation materials to be used in the construction of new trucks, providing significant savings in energy and water as well as raw materials.
“At Scania, we believe that being a sustainable business depends on adopting a more circular economic model, where the use of existing resources is maximised, and waste is minimised all along the value chain,” says Manfred Streit, Managing Director of Scania Australia.
“Circular business aligns with our core value of elimination of waste, as well as our lean production system and our modularisation approach. Circularity challenges us to rethink not just how we design and manufacture products, our impact and knowledge of the value chain, but also how we develop business models and provide value for our customers. Therefore, we are taking actions to gain a deeper understanding of the opportunities of a circular approach in the different parts of our value chain,” he says.
In practical terms this involves working with the supply chain, extending the life of products, optimising the use of resources and energy, maintaining product value as high as possible, remanufacturing spare parts and promoting reuse of components and recycling at the end-of-life product phase.
“As Scania leads the shift to a sustainable and electrified transport system, we are also exploring business opportunities around second life applications, recycling and reusing batteries and raw materials,” Manfred says.
Decreasing CO2 emissions is another key objective for Scania’s circularity objectives.
“We see circularity as a key enabler for decarbonisation. Virgin material production is energy intense, which is why every time we can, we avoid using virgin material, and instead reuse, remanufacture or recycle. In this way we save both natural resources and CO2 emissions,” he says. “So, when you become a Scania customer, you are benefiting not only from our engineering prowess, and our safety and engine efficiency, but also the wider story of our circularity investments for the benefit of the planet.”
Michael Lieder, Scania’s global business developer for the circular economy, explains why this focus is so important for the truck and bus maker.
“Circularity is the next big frontier in sustainability as it decouples business growth from resource use. Also, it’s vital for our business. As the earth’s resources dwindle, competition for key materials such as rare earth minerals becomes more intense, leading to price volatility and supply challenges. Adopting a circular business model ensures that we have access to the materials we need, and that we stay competitive by keeping product costs down. It also opens big opportunities to create value for our customers along the vehicle lifecycle. In other words, we can’t afford not to do it!”
For further information, please contact:
Alexander Corne
Public Relations Manager
Scania Australia Phone: + 61 (0) 418 120 443
E-mail: [email protected]
Scania is a world-leading provider of transport solutions. Together with our partners and customers, we are driving the shift towards a sustainable transport system. In 2024, we delivered 96,443 trucks, 5,626 buses as well as 11,170 industrial and marine power systems to our customers. Net sales totalled over SEK 216 billion, of which about 20 percent were services related. Founded in 1891, Scania now operates in more than 100 countries and employs some 59,000 people. Research and development is carried out globally with our main site in Södertälje, Sweden. Production takes place in Europe and Latin America with regional product centres in Africa and Asia. Scania is part of TRATON GROUP. For more information visit: www.scania.com
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