Schaeffler to buy ‘green steel‘ from Swedish start-up

After recently announcing a plan to become climate neutral by 2040, Schaeffler has entered into an agreement with Swedish start-up company H2greensteel (H2GS), to annually purchase 100,000 tons of the virtually CO2-free steel from 2025. This makes Schaeffler the first OE supplier to become a customer of the start-up company.

Steel to come from CO2-reducing start-up

Producing so-called ‘green steel’ is still very energy-intensive, so must be undertaken using sustainable sources. H2GS produces its steel without carbon dioxide by using a direct reduction method, in which hydrogen produced from renewable energies is used instead of coking coal, thus enabling a 95 percent reduction in the CO2 emissions produced by previous methods.

Klaus Rosenfeld, Chief Executive Officer of Schaeffler AG, says: “The use of green hydrogen for the direct reduction of iron ore is a crucial component in making steel clean and sustainable in the future. Hydrogen is an important technology and growth area for Schaeffler. Our partnership with H2greensteel is a very important step for us in improving sustainability.”

H2GS, which was founded in 2020, aims to produce five million tons of virtually CO2-neutral steel annually by 2030. “We are delighted to have found an experienced global partner, in Schaeffler, to support us in our goal of decarbonizisng the steel industry, with whom we can work toward making the world more sustainable for the future,” said Henrik Henriksson, CEO of H2GS.

Published by Greg Whitaker

Editor of CAT Magazine and an experienced motoring journalist @GregWhitaker5

Movers & Shakers: New appointment at MAHA UK

All the latest changes from across the sector, including new roles, promotions, and retirements

Read More

Autotech Group announces a host of leadership changes

Moves come as company transitions into a new phase under the leadership of CEO Simon King

Read More

Aftermarket firms that’ve failed to pay living wage named

One MOT centre owned employees more than £15,000; businesses were publicly named and shamed by the government

Read More

ELTA to stock Lucas bulbs at all Halfords stores

Pivotal factor of the deal saw all plastic packaging from Lucas and Halfords bulbs range removed

Read More

New grey area puts anyone who modifies a car at risk of prosecution

A workshop was recently found guilty of carrying out alterations to a car to make its exhaust louder

Read More

Go to comments

Your email address will not be published. Required fields are marked *