German technology group ZF has concluded a long-term supply agreement with Swedish start-up H2 Green Steel, Kallanish learns.
Once the Scandinavian venture has ramped up its mill in northern Sweden, it will supply ZF with 250,000 tonnes of steel from 2025 to 2032. This volume accounts for 10% of ZF’s current steel requirements and will save around 475,000t of CO2 emissions, the company claims.
ZF, headquartered in Friedrichshafen, is one of Germany’s largest automotive suppliers. It directly and indirectly processes around 2.5 million tonnes/year of steel at sites worldwide. “The steel industry is in the midst of a profound transformation. Innovative companies with new concepts are in demand. We are supporting this transformation through our long-term supply relationship with H2 Green Steel,” says Daniele Pontarollo, head of ZF’s group-wide materials management.
ZF says it is also in dialogue with other leading steel suppliers to explore opportunities for sourcing green steel. “We believe that by working closely with sustainable suppliers, we can significantly and sustainably reduce upstream emissions,” says Michael Karrer, responsible for environmental management throughout the ZF group.
So far, customers who have signed supply agreements with H2 Green Steel include Electrolux, Kingspan, Miele, Scania, Marcegaglia, Klöckner & Co, BMW and Roba Metals.
Christian Koehl Germany
