Porsche to Use Carbon-Reduced Steel - Smart Energy Decisions

Energy Efficiency, GHG Emissions, Industrial  -  November 2, 2023

Porsche to Use Carbon-Reduced Steel

Porsche AG signed an agreement for the supply of CO2-reduced steel to lower emissions at the auto company.

The agreement was signed with Swedish energy startup H2 Green Steel. H2 Green Steel plans to produce steel using renewable energy in Boden, Sweden, starting at the end of 2025. 

Beginning in 2026, Porsche and various direct Porsche suppliers of production material will be supplied with low-emission steel from H2 Green Steel that uses a production process with hydrogen and electricity from renewable energy sources. 

According to H2 Green Steel, this process results in up to 95% lower CO2 emissions than conventional steel production with coking coal. Up to 35,000 tons of the low-emission steel produced in Sweden are expected to be used annually for the series production of Porsche vehicles. In 2022, 220,000 tons of steel were used in Porsche vehicles.

The proportion of steel in Porsche’s vehicles has been reduced in recent years. In the meantime, Porsche is increasingly relying on aluminum for lightweight construction. 

“Porsche is working towards a carbon-neutral balance sheet across the value chain for its cars by 2030. CO2-reduced steel plays a key role in our sustainability strategy. With the steel from H2 Green Steel, we aim to further reduce the CO2 emissions caused by this important material,” said Barbara Frenkel, Executive Board Member for Procurement at Porsche AG, in a statement. “Energy, processes and materials account for a significant share of CO2 emissions in the supply chain. That is why we want to increase the use of recycled materials and green electricity in the production processes of direct suppliers as part of our decarbonisation efforts.” 

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