GHG Emissions, Sourcing Renewables - February 2, 2022
BMW Uses More Low Carbon Steel
The BMW Group continues to reduce CO2 emissions in its supplier network and signed a corresponding agreement with Salzgitter AG for delivery of low-carbon steel that will be used in standard production of cars at the BMW Group’s European plants starting in 2026.
The company has expanded its sourcing of low-carbon steel to two suppliers and the goal is to use low-carbon steel to meet over 40% of demand at its European plants by 2030, reducing CO2 emissions by up to 400,000 tons per year.
“Salzgitter AG is putting ‘circularity’ at the centre of its new strategy,” said Gunnar Groebler, CEO of Salzgitter AG in a statement. “We firmly believe that closed loops of recoverable materials can only realise their full effect with strong partners. We are delighted about the circular economy cooperation with the BMW Group and the agreement to supply green steel to our long-standing customer. Partnering for Transformation – this is how we will translate our new corporate vision into practice.”
The BMW Group signed an agreement with Swedish startup H2 Green Steel in October of last year. H2 Green Steel will supply the BMW Group’s European plants with steel produced exclusively using hydrogen and green power from renewable energies from 2025 onwards. This process will reduce CO2 emissions by around 95%.
To lower CO2 emissions from steel production on a massive scale, Salzgitter AG is gradually This green hydrogen will replace the coal currently used in the conventional blast-furnace process. Salzgitter AG plans to use this method to gradually reduce CO2 emissions from steel production to around 5% of what they originally were.
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