company news about Leading to carbon neutrality in the supply chain | Schaeffler "embrace" green steel

Leading to carbon neutrality in the supply chain | Schaeffler "embrace" green steel

2021-11-15 09:16:54 [Source: Schaeffler]

The Schaeffler Group has reached an agreement with H2greensteel, a Swedish innovative start-up company, to purchase 100,000 tons of steel produced by hydrogen energy every year from 2025. This agreement is a long-term purchase agreement.

The steel purchased by Schaeffler does not use fossil fuels in the production process and can reduce carbon dioxide emissions by up to 200,000 tons per year. The signing of this agreement is an important step towards Schaeffler's goal of carbon neutrality in the supply chain by 2040.

H2greensteel (H2GS) aims to produce 5 million tons of nearly zero-emission steel per year by 2030. The company plans to build a networked and digitalized "green steel" production plant in the towns of Boden and Luleå in Sweden. This will be the first fossil-free steelmaking plant in Europe in 40 years and will be equipped with dedicated hydrogen production facilities.

Through the direct reduction process, H2GS uses hydrogen generated from renewable energy to replace coking coal, reducing carbon dioxide emissions by 95% compared with the previous production process, making steel production achieve nearly zero carbon dioxide emissions. match

Henrik Henriksson, CEO of H2GS, said: "We are very pleased that Schaeffler has become our global partner. Schaeffler has extensive industry experience and can help us achieve the decarbonization goal of the steel industry. Together, the two parties will achieve the goal of decarbonization in the steel industry. Continue to develop and work together."