(Credit: Canva Pro)H2 Green Steel and ZF are partnering to promote decarbonization in the automotive industry. H2 Green Steel, a producer of near-zero emissions steel, and ZF, an international supplier for the automotive industry, signed a seven-year binding agreement. This strategic partnership will result in the delivery of near-zero emissions steel starting in 2026.
The agreement covers a significant portion of ZF's annual steel volumes. With its current sustainability strategy, ZF aims to achieve climate neutrality by 2040, including value chain emissions. The agreement, valued at $1.5 billion, is expected to significantly reduce carbon emissions compared to traditional steelmaking processes.
Compared to traditional steelmaking processes, the use of near-zero emissions steel is estimated to result in a reduction of close to 2.3 million metric tons of carbon emissions. As ZF processes approximately 2.5 million metric tons of steel per year, this agreement covers a significant share of its annual steel volumes. By choosing sustainable alternatives, ZF is actively working towards its ambitious climate neutrality target by 2040.
In addition to supplying near-zero emissions steel, H2 Green Steel will collaborate closely with ZF's sub-suppliers. This integrated approach aims to drive the transformation of the entire supply chain within the steel industry. By engaging with sub-suppliers, H2 Green Steel and ZF emphasizing decarbonization efforts throughout the value chain.
ZF’s partnership with companies like H2 Green Steel is part of a collaborative effort to work towards decarbonization. ZF is striving to achieve greater impact and drive change faster within the industry. Stephan von Schuckmann, a member of ZF's Board of Management, emphasized the strategic nature of the agreement in ZF's comprehensive approach to reducing carbon emissions from its supply chain.
This collaboration also assists H2 Green Steel with the potential for future expansion into regions like North America.
H2 Green Steel works with both green hydrogen and green steel, and as steel is one of the most important construction products, it is also one of the most polluting industries. To reduce carbon emissions, H2 Green Steel is producing green steel with electricity and green hydrogen. H2 Green Steel, with ZF’s mobility platforms for various industrial applications, including commercial vehicles and passenger cars, intends to prioritize decarbonization for the vehicle industry.
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