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Porsche AG and H2 Green Steel sign agreement for supply of CO2-reduced steel
Porsche AG and the Swedish industrial start-up H2 Green Steel have signed an agreement for the supply of CO2-reduced steel . The aim is to further improve the emissions balance of Porsche vehicles by using CO2-reduced steel .
H2 Green Steel plans to produce steel using renewable electricity in Boden , Sweden , starting end of 2025 . From 2026 , Porsche and various direct Porsche suppliers of production material are to be supplied with near-zero-emission steel from the company . This agreement marks the second contract between H2 Green Steel and a company in the Volkswagen Group , following that of Scania announced earlier in 2023 .
The material would have one of the lowest carbon footprints on the market . H2 Green Steel relies on an innovative production process with hydrogen and electricity from renewable energy sources . Production of the steel is therefore almost CO2-free . According to H2 Green Steel , this results in up to 95 percent lower CO2 emissions than conventional steel production with coking coal . Up to 35,000 tonnes of low-emission steel produced in Sweden are to be used per year for the series production of Porsche vehicles . By way of comparison : in 2022 , 220,000 tonnes of steel were used in Porsche vehicles .
“ Porsche is working towards a carbon-neutral balance sheet across the value chain for its cars by 2030 . CO2-reduced steel plays a key role in our sustainability strategy . With the steel from H2 Green Steel , we aim to further reduce the CO2 emissions caused by this important material ,” explains Barbara Frenkel , Executive Board Member for Procurement at Porsche AG .
The proportion of steel in Porsche ’ s vehicles has been continuously reduced in recent years . In the meantime , Porsche is increasingly relying on aluminum for lightweight construction . However , steel remains one of the key elements in sports car construction due to its excellent mechanical properties . “ Energy , processes and materials account for a significant share of CO2 emissions in the supply chain . That is why we want to increase the use of recycled materials and green electricity in the production processes of direct suppliers as part of our decarbonisation efforts ,” comments Barbara Frenkel .
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Green Steel World | Issue 9 | November 2023 19