Mercedes-Benz has partnered with H2 Green Steel (H2GS), a Swedish start-up, to secure a supply deal for approximately 50,000 tonnes of nearly CO₂-free steel per year. This agreement allows Mercedes-Benz to introduce eco-friendly steel into their European press shops, enabling them to accelerate the creation of a decarbonized and resilient steel supply chain. In addition, the partnership aims to establish a sustainable steel supply chain in North America through a Memorandum of Understanding (MoU). H2 Green Steel’s innovative manufacturing process utilizes hydrogen and renewable energy sources, significantly reducing CO₂ emissions compared to traditional blast furnace steel production methods. This collaboration showcases Mercedes-Benz’s commitment to a greener and more sustainable automotive industry.
Mercedes-Benz and H2 Green Steel Join Forces for CO₂-Free Production
Mercedes-Benz, the renowned luxury automobile manufacturer, has joined forces with H2 Green Steel (H2GS), a Swedish start-up, to embark on a groundbreaking endeavor to transform the steel supply chain. The partnership aims to revolutionize steel production by introducing nearly CO₂-free manufacturing technology, marking a significant step towards decarbonizing the automotive industry.
Through their new supply agreement, Mercedes-Benz will receive approximately 50,000 tonnes of CO₂-free steel per year from H2GS, effectively incorporating sustainable steel into their European press shops. This agreement is the result of Mercedes-Benz’s equity stake in H2GS, which was established in 2021. The collaboration enables the luxury car manufacturer to bring environmentally friendly steel into series production, propelling their sustainability initiatives to new heights.
H2 Green Steel employs an innovative manufacturing process that virtually eliminates CO₂ emissions. Instead of relying on traditional blast furnace methods that emit more than two tons of CO₂ per ton of steel, H2GS utilizes hydrogen and electricity from 100% renewable energy sources to power their production. The hydrogen acts as a reduction gas, releasing and binding the oxygen from the iron ore, resulting in the emission of water vapor instead of CO₂. H2GS aims to achieve a carbon footprint of only 0.4 tons of CO₂ per ton of steel at the start of the supply.
The strategic partnership between Mercedes-Benz and H2GS goes beyond their collaboration in Europe. They have also signed a Memorandum of Understanding (MoU) to establish a sustainable steel supply chain in North America. This expansion highlights their shared commitment to sustainable practices and resilience in the automotive industry. Mercedes-Benz intends to procure green steel produced in North America for its local manufacturing plants, underscoring its dedication to procuring materials close to production sites.
Mercedes-Benz and H2 Green Steel Extend Partnership to Establish Sustainable Steel Supply Chain in North America
Building on their successful collaboration in Europe, Mercedes-Benz and H2 Green Steel (H2GS) have expanded their partnership to establish a sustainable steel supply chain in North America. This strategic move marks a significant milestone in their shared mission to revolutionize the automotive industry and accelerate the transition towards greener practices.
The Memorandum of Understanding (MoU) signed by Mercedes-Benz and H2GS outlines their joint commitment to developing a sustainable steel supply chain in North America. The aim is to procure green steel produced locally for Mercedes-Benz manufacturing plants in the region. By sourcing steel in close proximity to production sites, the companies can reduce emissions associated with transportation and contribute to the resilience of their supply chain.
H2 Green Steel’s innovative manufacturing process, which relies on hydrogen and renewable energy sources, offers a compelling solution for sustainable steel production. Unlike traditional methods that generate significant CO₂ emissions, H2GS’s approach releases water vapor instead of carbon dioxide. This drastic reduction in carbon emissions aligns perfectly with Mercedes-Benz’s ambitious goals of achieving a net-carbon-neutral supply chain by 2039.
The partnership extension between Mercedes-Benz and H2GS in North America reflects their shared vision of transforming the steel industry and driving sustainable change. By working closely together, they can leverage their expertise and resources to establish a local steel supply chain that adheres to stringent sustainability standards.
Mercedes-Benz and H2 Green Steel Pioneer CO₂-Free Steel Production for Sustainable Automotive Manufacturing
In a trailblazing move towards sustainable automotive manufacturing, Mercedes-Benz and H2 Green Steel (H2GS) have emerged as pioneers in CO₂-free steel production. By leveraging innovative technologies and forging strategic partnerships, they are revolutionizing the steel industry and setting new benchmarks for environmental responsibility.
Mercedes-Benz’s collaboration with H2GS represents a significant step in its mission to decarbonize the automotive supply chain. With an equity stake in H2GS since 2021, Mercedes-Benz has solidified its commitment to sustainable steel production. The recent supply agreement, which secures approximately 50,000 tonnes of almost CO₂-free steel annually for their European press shops, enables Mercedes-Benz to integrate eco-friendly steel into series production.
H2 Green Steel’s manufacturing process relies on renewable energy sources and hydrogen, eliminating the need for coking coal and drastically reducing CO₂ emissions. Traditional blast furnace methods emit over two tons of CO₂ per ton of steel, whereas H2GS’s approach results in the release of water vapor instead of carbon dioxide. With a targeted carbon footprint of just 0.4 tons of CO₂ per ton of steel at the start of supply, H2GS is at the forefront of sustainable steel production.
Mercedes-Benz and H2GS have now set their sights on North America, aiming to establish a sustainable steel supply chain in the region. Through a Memorandum of Understanding (MoU), the partners will work together to procure green steel produced locally for Mercedes-Benz manufacturing plants. This expansion underscores their commitment to resilience, sustainability, and procuring materials in proximity to production sites.
By actively pursuing a decarbonized supply chain, Mercedes-Benz is reshaping the automotive industry’s approach to sustainability. They have already introduced low-CO₂ steel made from scrap into four series models, reducing emissions by more than 60% for the respective steel grades. In addition, Mercedes-Benz is incorporating aluminum with a remarkable 70% CO₂-reduction compared to the European average, recognizing the growing importance of lightweight materials in electric vehicle production.
