Mercedes-Benz to Use Carbon-Free Steel - Smart Energy Decisions

Energy Efficiency, GHG Emissions, Industrial  -  June 8, 2023

Mercedes-Benz to Use Carbon-Free Steel

Mercedes-Benz signed an agreement to receive over approximately 50,000 tons of almost CO₂-free steel per year for its European press shops.

The German automaker signed a Memorandum of Understanding (MoU) with Swedish start-up H2 Green Steel (H2GS) to establish a sustainable steel supply chain in North America. The partner plans to start its production in 2025.

As part of its effort to decarbonize its supply chain, Mercedes-Benz will use the supply chain for green steel for local Mercedes-Benz manufacturing plants.

“With the supply deal of around 50,000 tons almost CO₂-free steel from H2 Green Steel for our manufacturing plants in Europe, Mercedes-Benz and H2 Green Steel are accelerating the creation of a decarbonized, regional, and resilient steel supply chain,” said Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG. Chief Technology Officer, Development & Procurement, in a statement.

The supplier uses hydrogen as a reduction gas, which produces water vapor, rather than CO2. It also uses electricity from 100% renewable energy sources. H2GS aims to achieve a footprint of 0.4t CO₂ per ton of steel at the start of supply.

Mercedes-Benz is working with all its suppliers towards a net-carbon neutral supply chain from 2039 at the latest. The luxury carmaker is retooling its supply chain to focus on the prevention and reduction of CO₂ emissions rather than off-setting. 

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