H2GS signs €1.5 billion deal with ZF

H2 Green Steel (H2GS) has signed a seven-year binding agreement with ZF to deliver zero-emissions steel to one of the biggest suppliers to the automotive industry globally starting from 2026.

ZF directly and indirectly processes around 2.5 million tonnes/year of steel. This agreement covers a significant share of ZF’s yearly steel volumes, making it strategically important in the company’s efforts to decarbonise its operations, H2GS says.

ZF aims to be climate neutral by 2040, including value chain emissions. The agreement, valued at €1.5 billion ($1.63 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. H2 Green Steel is a good example of startups 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,” ZF board member Stephan von Schuckmann says in a note seen by Kallanish.

“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,” says H2 Green Steel chief executive Henrik Henriksson.

ZF, with 165,000 staff across 32 countries, is a global technology company supplying mobility technology for passenger cars, commercial vehicles and other industrial applications.

Adam Smith Poland