Mercedes-Benz and H2 Green Steel have signed a contract for the annual supply of around 50,000 tons of green steel for the automaker's European production. In addition, an MoU was agreed for the purchase of green steel produced in the USA.
According to both companies, Mercedes-Benz was one of the first investors in H2 Green Steel. The reason: Mercedes has long experienced high demand for green steel. Customers are willing to pay more for products produced in a climate-neutral way, they say.
The original MoU has now been developed into a binding agreement for a volume of around 50,000 t per year. H2 Green Steel plans to produce them at the new green hydrogen-fueled iron and steel mill in Boden, northern Sweden. As part of a sustainability initiative, the partners also want to create a closed loop for recycling steel scrap in Boden.
Hydrogen in auto construction
Based on the partnership in Europe, Mercedes-Benz plants in North and South America will also be supplied with green steel produced in North America in the future. This is intended to demonstrate the viability and environmental value of a green steel supply chain.
Henrik Henriksson, CEO of H2 Green Steel:
"By working with Mercedes-Benz, we have a partner with whom we can raise the bar in terms of supply chain emissions, circular economy and social sustainability. They are a very strong partner for our European operations, but of course also for our efforts in the steel value chain in North America.
We've been talking to various stakeholders in both Canada and the U.S. for some time, and the possibility of using a large supply of renewable electricity to produce green hydrogen and green sponge iron."
