The automotive and industrial supplier Schaeffler has entered into an agreement with Swedish start-up company H2greensteel to purchase 100,000 tonnes of the virtually CO2-free steel, which is produced using hydrogen, on an annual basis with effect from 2025. The agreement is set for the long-term and includes the delivery of strip steel. The steel produced in Sweden requires non fossil fuels and reduces Schaeffler's annual CO2 emissions cp by up to 200,000 tons. The agreement is a first major step to make Schaeffler's supply chain carbon-neutral by 2040.H2greensteel was founded in 2020 and aims to produce five million tons of virtually CO2-neutral steel annually in Sweden by 2030. As a Greenfield project, the company is planning a new steel site with networked and digital production that will produce "green steel" in the towns of Boden and Luleå. The production of steel without carbon dioxide is realized by H2GS through the use of the direct reduction method, in which hydrogen produced from renewable energies is used instead of coking coal, thus enabling a 95 percent reduction in the CO2 emissions produced with previous methods. The founder and majority shareholder of H2GS is Vargas Holding, a co-founder and major shareholder of the Swedish battery cell manufacturer Northvolt.Schaeffler Group is a leading global supplier to the automotive and industrial sectors. The technology company produces precision components and systems for drive train and chassis applications as well as rolling and plain bearing solutions for a multitude of industrial applications. The Schaeffler Group generated sales of approximately EUR 12.6 billion in 2020. With around 83,900 employees
The automotive and industrial supplier Schaeffler has entered into an agreement with Swedish start-up company H2greensteel to purchase 100,000 tonnes of the virtually CO2-free steel, which is produced using hydrogen, on an annual basis with effect from 2025. The agreement is set for the long-term and includes the delivery of strip steel. The steel produced in Sweden requires non fossil fuels and reduces Schaeffler's annual CO2 emissions cp by up to 200,000 tons. The agreement is a first major step to make Schaeffler's supply chain carbon-neutral by 2040.H2greensteel was founded in 2020 and aims to produce five million tons of virtually CO2-neutral steel annually in Sweden by 2030. As a Greenfield project, the company is planning a new steel site with networked and digital production that will produce "green steel" in the towns of Boden and Luleå. The production of steel without carbon dioxide is realized by H2GS through the use of the direct reduction method, in which hydrogen produced from renewable energies is used instead of coking coal, thus enabling a 95 percent reduction in the CO2 emissions produced with previous methods. The founder and majority shareholder of H2GS is Vargas Holding, a co-founder and major shareholder of the Swedish battery cell manufacturer Northvolt.Schaeffler Group is a leading global supplier to the automotive and industrial sectors. The technology company produces precision components and systems for drive train and chassis applications as well as rolling and plain bearing solutions for a multitude of industrial applications. The Schaeffler Group generated sales of approximately EUR 12.6 billion in 2020. With around 83,900 employees
