H2 Green Steel in Euro 1.5 billion agreement with ZF
STOCKHOLM, July 4, 2023 /PRNewswire/ — H2 Green Steel has signed a 7-year binding agreement with ZF, one of the biggest suppliers to the automotive industry globally. Deliveries of near zero emissions steel are set to begin in 2026.
ZF, directly and indirectly, processes around 2.5 million tonnes of steel per year worldwide. This agreement covers a significant share of ZF’s yearly steel volumes, making it strategically important in the company’s efforts to decarbonize its operations.
ZF has a strong sustainability strategy and aims to be climate neutral by 2040, including value chain emissions. This agreement, valued at 1.5 billion euros, is expected to reduce CO2 emissions by close to 2.3 million tonnes 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,” says ZF Board of Management member Stephan von Schuckmann.
This agreement will see H2 Green Steel also work closely with ZF’s sub-suppliers, with the goal of driving the steel industry transformation as an integrated approach in the entire supply chain.
“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 Henrik Henriksson, CEO of H2 Green Steel.
ZF has some 165,000 employees at 168 production locations in 32 countries. The company was founded in 1915 and is global technology company supplying mobility technology for passenger cars, commercial vehicles and other industrial applications.