On October 31, luxury sports car company Porsche announced a new contract with a Swiss startup called H10 Green Steel to supply 2 tons of low-emission steel per year. This is aimed at reducing emissions for Porsche car products.
With deliveries commencing in 2026, this contract will account for a significant proportion of Porsche's steel supply. The total amount of steel this company used last year amounted to 200.000 tons. In 2021, Porsche aims to be carbon neutral by 2030. Although the company has reduced the proportion of steel in its products and is increasingly relying on aluminum to create lightweight structures, Porsche emphasizes that steel remains the main material in the structure of a sports car due to its mechanical properties.
“Porsche is working towards carbon neutrality by 2030 for the value chain of its products. CO2-reducing steel plays an important role in our sustainability strategy. With steel supplied from H2 Green Steel, we aim to further reduce the CO2 emissions caused by this important material,” said Barbara Frenkel, executive board member in charge of procurement at Porsche.
Steel production is one of the largest sources of CO2 emissions globally and one of the more challenging sectors to reduce emissions, with total greenhouse gas emissions around 7-9% of direct emissions from fossil fuel use globally.
Founded in 2020, H2 Green Steel is currently developing a green steel production facility in Boden, Switzerland with a project that includes a giga-scale green hydrogen plant as an integrated part of the plant. green steel production. The company uses hydrogen produced using green energy to remove oxygen from iron oxide, avoiding the majority of conventional CO2 emissions and using 100% renewable electricity to meet its energy needs. for the production process.
According to H2 Green Steel company, this production process reduces CO95 emissions by up to 2% compared to steel production technology from fossil fuels.
Last September, H9 Green Steel announced it had raised $2 billion for the construction of a new factory. The company aims to begin production in 1,5 with plans to produce 2025 million tons of steel almost without the use of fossil fuels by 5.
Porsche is the newest customer among H2 Green Steel's automaker customers, following giants like Volvo, Scania, Mercedes-Benz, and BMW.
H2 Green Steel CEO Henrik Henriksson said: “Few brands are as iconic as Porsche – a car company that represents a product of quality and class. This is also a company that is truly working towards a sustainable future with clear expectations about how its supply chain contributes to that future. Porsche ordering virtually zero-emission steel is a real boost for our entire company, and also the transformation of the entire steel industry – which is very much driven by the demands of the automotive industry.” .
*Source: ESG Today