Partnered with Sweden's H2 Green Steel
Porsche and Swedish energy start-up H2 Green Steel sign an agreement for the supply of carbon-reducing steel.
By using carbon-reducing steel, the aim is to further improve the carbon footprint of future Porsche vehicle supply chains.
H2 Green Steel plans to produce steel using renewable energy in Boden, Sweden from the end of 2025, with low-emission steel expected to be supplied to Porsche and its direct suppliers from 2026. .
H2 Green Steel aims to provide steel with the lowest carbon footprint on the market.
H2 Green Steel has an innovative manufacturing process that uses hydrogen and electricity from renewable energy sources, which H2 Green Steel says results in lower CO2 emissions than traditional steel production using coking coal. It is said that the amount will be reduced by up to 95%. 95% is quite amazing.
By the way, it seems that Porsche will use 220,000 tons of steel in 2022, but from now on Porsche will use up to 35,000 tons of this low CO2 emission steel produced in Sweden every year.
Even if we consider the same amount as the amount used in 2022, it seems that the remaining approximately 185,000 tons will still depend on conventional steel.
While Porsche has continuously reduced the proportion of steel it uses in its vehicles over the past few years, it has also increased its reliance on aluminum for lightweight construction.
However, steel still remains an important element in Porsche production due to its excellent mechanical properties.
That's why, as part of our efforts to decarbonize steel, which is said to account for a large portion of CO2 emissions in our supply chain, we want to increase the use of recycled materials and green electricity in production processes at our direct suppliers. '' said Barbara Frenkel, executive officer of Porsche's procurement department.
What is H2 Green Steel?
Finally, about H2 Green Steel, a company founded in 2020 that aims to use green hydrogen to accelerate the decarbonization of the steel industry.The company is headquartered in Stockholm and located in Boden, northern Sweden. The company is building its first green steel factory in .
The founder and largest shareholder of H2 Green Steel is Vargas, who is also the co-founder and largest shareholder of Northvolt, a Swedish battery manufacturer.
Source:Porsche plans to use CO₂-reduced steel in some of its vehicles starting in 2026