H2 Green Steel and automotive supplier ZF have signed a 7-year binding agreement with deliveries of near zero emissions steel set to begin in 2026.
ZF directly and indirectly processes around 2.5Mt/yr of steel worldwide. According to a company press release, this agreement covers a significant share of ZF’s yearly steel volumes, making it strategically important in the company’s efforts to decarbonize its operations.
ZF is currently aiming to be climate neutral by 2040, including value chain emissions. This agreement, valued at €1.5 billion, is expected to reduce CO2 emissions by close to 2.3Mt compared to traditional steelmaking processes.
"No one can fight climate change alone, but teaming up with partners, we can achieve a lot.''
Stephan von Schuckmann, ZF board of management member
"No one can fight climate change alone, but teaming up with partners, we can achieve a lot. H2 Green Steel is a good example of start-ups working together with established players to drive change faster than the incumbent industry has managed. For ZF, this is a strategic agreement in our significant efforts to reduce CO2 emissions from our supply chain,” said ZF board of management member Stephan von Schuckmann.
''ZF’s role in the automotive ecosystem is undeniable and they are a true partner to us where we also see potential to move into other regions, like North America.''
Henrik Henriksson, CEO of H2 Green Steel
“This is a true milestone contract for H2 Green Steel, not the least because of its size. ZF’s role in the automotive ecosystem is undeniable and they are a true partner to us where we also see potential to move into other regions, like North America, commented Henrik Henriksson, CEO of H2 Green Steel.