Mercedes-Benz to introduce green steel in vehicles from 2025

Mercedes-Benz AG is taking another step towards carbon neutrality with plans to introduce CO2 free steel into series production.

Retooling its supply chain to focus on the prevention and reduction of CO2 emissions, Mercedes is the first vehicle manufacturer to take an equity stake in Swedish start-up H2 Green Steel (H2GS).

Founded in 2020, H2GS aims to build a large-scale fossil-free steel production facility in northern Sweden, which will produce five million tons of fossil-free fuel by 2030.

As part of Mercede’s goal to achieve a fully connected and CO2 neutral vehicle fleet in 2039, the companies partnership with HSGs is an important move in tacking one of the biggest challenges in the automotive industry on the road of carbon neutrality.

Steel produced using a classic blast furnace emits an average of more than two tons of CO2 per ton. By contrast, using a new, innovative manufacturing process, the production of steel at the supplier level is CO2 free.

As part of this new process, the supplier uses hydrogen and electricity from 100 per cent renewable energy sources. This hydrogen serves as a reduction gas, which releases and binds the oxygen from the iron ore.

To showcase the importance of steel in the manufacturing process, a Mercedes-Benz sedan for example is made from about 50 per cent steel, which accounts for 30 per cent of CO2 emissions in production.

“With an equity stake in H2 Green Steel, Mercedes-Benz is sending an important signal to accelerate change in the steel industry and increase the availability of carbon-free steel,” said Markus Schafer, Member of the Board of Management of Daimler AG, and Mercedes-Benz AG.

“As a preferred partner of the start-up, we will be launching green steel in various vehicle models as early as 2025.”

Already, suppliers representing more than 85 per cent of Mercedes-Benz’s annual purchasing volume have signed an Ambition Letter, agreeing to supply the company with only CO2 neutral products in the future.

Source: Daimler | Mercedes-Benz to use green steel in vehicles in 2025, reducing its carbon footprint

26 May 2021

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