Klöckner partners with Swedish H2 Green Steel venture

Klöckner & Co says it has partnered with Swedish start-up H2 Green Steel (H2GS) and secured unique access to substantial volumes of steel that is considered almost free of CO₂ emissions.

With this collaboration, Klöckner is boosting its offering of sustainable products and services significantly, Kallanish is told by the German-based distribution group. It says it is seizing the strategic opportunity to deeply integrate the new and attractive business activities arising from green steel into its business model.

“As part of our corporate strategy, we are working at full speed to implement this new offering, which will make us a pioneer of sustainability in the steel industry,” says Klöckner chief executive Guido Kerkhoff.

The company is securing significant quantities of green steel for its customers at an early stage. Starting in 2025, the initial partnership defines the delivery of annual volumes of up to 250,000 tonnes, which may be extended in the future. The flat steel supplied by H2GS will be processed primarily by Klöckner subsidiary Becker Stahl-Service. The products will be offered to customers especially in the European automotive and domestic appliance industries.

Klöckner notes it is committed to the UN Global Compact initiative “Business Ambition for 1.5°C”, thus aligning its business activities with science-based targets in order to limit the global temperature increase.

Christian Koehl Germany