ZF and H2 Green Steel Enter Into a 1.5 Billion Euro Agreement

Europe: H2 Green Steel has entered a 7-year binding commitment with ZF, a major global supplier to the automotive industry. The agreement will see the delivery of Steel with almost zero emissions, and the first shipment is scheduled for 2026. ZF plays a significant role in the worldwide Steel industry, processing around 2.5 million tonnes of Steel annually both directly and indirectly. This new accord covers a substantial portion of ZF's yearly Steel volumes, making it a crucial element in their operations decarbonization initiatives.

In line with their sustainability objectives, ZF aims to achieve carbon neutrality by 2040, including value chain emissions. To this end, the company has adopted a robust sustainability strategy. As part of this, ZF has signed a significant agreement worth 1.5 billion euros that is expected to eliminate close to 2.3 million tonnes of CO₂ emissions compared to conventional Steel manufacturing processes.

According to Stephan von Schuckmann, a member of the ZF Board of Management, tackling climate change requires collective action and collaborative effort. H2 Green Steel is an excellent illustration of how startups and established players can work together to achieve this goal faster than the traditional industry. Therefore, for ZF, partnering with H2 Green Steel is a strategic move in their quest to significantly reduce CO₂ emissions from their supply chain.

Under this agreement, H2 Green Steel will collaborate closely with ZF's sub-suppliers to drive the transformation of the Steel industry through an integrated approach that encompasses the entire supply chain.

Henrik Henriksson, the CEO of H2 Green Steel, stated that this contract marks a significant milestone for the company, especially due to its size. He also added that ZF is an essential player in the automotive ecosystem and a valuable partner for H2 Green Steel. Henriksson further expressed his anticipation to expand their partnership into other regions, such as North America.

With 168 production facilities spread across 32 countries, ZF has a workforce of approximately 165,000 employees. The company was established in 1915 and has since become a worldwide technology leader that provides mobility solutions for various industrial applications, including commercial vehicles and passenger cars.

H2 Green Steel is all set to revolutionize the Steelmaking industry with its state-of-the-art, fully integrated, and circular plant located in Boden, northern Sweden. With a mission to reduce CO₂ emissions by up to 95% compared to traditional Steel manufacturing methods, the company is going to produce green Steel using green hydrogen powered by fossil-free electricity. By eliminating the use of coal, H2 Green Steel is on its way to making water and heat the primary emissions from its production process. The company's expertise in green hydrogen will also help to make other heavy industries eco-friendly.

H2 Green Steel's commitment to protecting the environment and promoting sustainability is not just limited to its production process. The company has an extensive set of environmental, economic, and social policies in place that covers everything from its business model and supply chains to its impact on local communities.