Porsche AG and the Swedish startup H2 Green Steel have signed an agreement for the supply of 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.
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.
Barbara Frenkel, Executive Board Member for Procurement at Porsche AG. says: “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.”
“Few brands are as iconic as Porsche. It stands for quality and a premium product. It’s also a company that is working actively towards a sustainable future, with clear expectations on how the supply chain contributes to that. Having Porsche place an order for near zero-emission steel is a real boost both for us as a company, but also the transformation of the steel industry, which has very much been driven by the demand from the automotive industry”, adds Henrik Henriksson, H2 Green Steel’s CEO.
H2 Green Steel uses end-to-end digitalisation, and electricity from fossil-free sources and green hydrogen instead of coal, to work to bring CO2 emissions down.