Wednesday, November 30, 2022
News Mercedes-Benz Invests in Green Steel Startup

Mercedes-Benz Invests in Green Steel Startup

Cleaner steel for cleaner cars

  • New steel foundry uses emissions-free process

  • Benz wants zero-carbon supply chain by 2039


Mercedes-Benz has just announced that it will be partnering with a new startup to introduce carbon-free steel. Well, carbon emissions-free steel, as it works to redesign the automaker’s supply chain to help improve company sustainability and reduce emissions from more than just the tailpipe.

The automaker has taken an equity stake in Swedish startup H2 Green Steel (H2GS), and it calls that step “an important signal to accelerate change in the steel industry and increase the availability of carbon-free steel.” Without an exact figure, Mercedes-Benz said it has invested “a single-digit million amount.”

H2GS makes its steel using hydrogen and energy from renewable sources instead of the traditional use of coking coal. The company says the hydrogen added releases the oxygen from the iron ore but instead of the CO2 emissions from burning coal produces only water. The company was formed last year and aims to produce five million tons of fossil-free steel per year by 2030.

Benz says that around 50 percent of a typical sedan is steel, and that accounts for 30 percent of CO2 emissions involved in the production of the vehicle. Typical steel production releases more than two tons of CO2 per ton of steel, Mercedes says, while this new method produces zero.

It’s the latest step in the automaker’s efforts to produce its vehicles in a carbon-neutral way, and suppliers making up more than 85 percent of the company’s purchasing volume have agreed to supply only CO2-neutral products in the future.

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