H2 Green Steel and Mercedes-Benz sign agreement for green steel delivery

The steel will be produced by H2 Green Steel’s green hydrogen powered iron and steel plant in Boden in northern Sweden, which has recently received a full environmental permit.

“H2 Green Steel exists because pioneering companies in the automotive industry, like Mercedes-Benz, signaled the transition in the steel industry was too slow for them to meet their climate targets. Working side-by-side with Mercedes Benz, we have a partner with whom we can raise the bar when it comes to supply chain emissions, circularity and social sustainability. They are a very strong player to liaise with for our European operations, but naturally also as we endeavour into the steel value chain in North America,” said Henrik Henriksson, CEO, H2 Green Steel.

“With the supply deal of around 50kt almost CO₂-free steel from H2 Green Steel for our manufacturing plants in Europe, Mercedes-Benz and H2 Green Steel are accelerating the creation of a decarbonized, regional and resilient steel supply chain. At the same time, we are taking our partnership to the next level with the aim of establishing a sustainable steel supply chain in North America, another important step towards making the auto industry more resilient and sustainable,” commented Markus Schäfer, member of the board of management of Mercedes-Benz Group AG.

The two companies have also agreed to work together to enable a long-term supply of green steel produced in North America for Mercedes-Benz’s manufacturing plants in North and South America.