Swedish manufacturer Alfa Laval has partnered with SSAB, a Sweden- and U.S.-based steel company, to develop and commercialize the world’s first heat exchanger made with fossil-free steel, according to a recent statement.

The partnership aims to make the first unit, which will use hydrogen-reduced steel, by 2023.

Alfa Laval’s heat exchangers, which are 40% steel, are already up to 50% more energy efficient than “traditional technology,” the company said. By using fossil-free steel, it can further improve the sustainability of its product by saving energy and reducing CO2 emissions. The company’s heat exchangers are used in a variety of natural refrigerant applications.

“I’m pleased to announce this collaboration with SSAB, which builds on our shared expertise and a determination to drive innovation,” said Tom Erixon, President and CEO of Alfa Laval. “By bringing together their fossil-free steel and our energy-efficient heat exchangers, we can contribute to the industry’s transformation towards carbon neutrality.”

“By bringing together their fossil-free steel and our energy-efficient heat exchangers, we can contribute to the industry’s transformation towards carbon neutrality.”

Global steel production currently accounts for around 7% of the world’s greenhouse gas emissions, but, according to Alfa Laval, SSAB’s upcoming fossil-free steel made with HYBRIT technology offers “a breakthrough for the industry as it transitions to more sustainable operations.”

“We’re proud to welcome Alfa Laval as a partner and look forward to jointly exploring ways forward to mitigate climate change,” said Martin Lindqvist, President and CEO of SSAB. “With this collaboration we’re reaching new segments and hopefully inspiring a whole new range of customers.”

According to Alfa Laval, its partnership with SSAB marks an important step in its journey to eliminating emissions from its products and becoming carbon neutral across its value chain by 2030.

Similarly, through its “Concept Zero” strategy, Alfa Laval is committed to helping decarbonize industry by developing a carbon-neutral heat exchanger by 2030. In addition to using fossil-free steel, the company’s future heat exchangers will include recycled materials and will be easily recycled. Alfa Laval believes that partnerships are crucial to finding and accelerating solutions that are innovative and sustainable in the pursuit of this objective.

Alfa Laval is also contributing to the transition to renewables-based combined heat and power (CHP) in China. Its heat exchangers are critical components for a CHP fuel cell system in Guiyang, which uses hydrogen gas as the energy source. Alfa Laval’s fusion-bonded plate heat exchanger will cool the fuel cell stack, while its gas-to-liquid plate heat exchanger will recover exhaust heat.

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