Mercedes to source over 200,000 tonnes of CO₂-reduced steel annually
Mercedes-Benz plans to use more than 200,000 tonnes of CO2-reduced steel per year from its European suppliers Salzgitter, Thyssenkrupp Steel, Voestalpine, Arvedi, SSAB and H2 Green Steel in its press plants before the end of this decade.
The establishment of a sustainable steel supply chain in Europe serves as a blueprint for other regions. Currently, Mercedes calculates steel accounts for up to 20 per cent of the total CO2 emissions in the production of an electric car. By 2030 at the latest, Mercedes-Benz Cars aims to at least halve the average CO2 emissions per passenger car in the new vehicle fleet compared to 2020, across the entire life cycle from raw material procurement to use and recycling.
Mercedes explains that “if a direct reduction process is combined with the steel making in an electric arc furnace (EAF), rather than coke-based blast furnace production, CO₂ emissions can be significantly reduced”. To compare, during a natural-gas-based direct reduction process, carbon monoxide and hydrogen are used to dissolve the oxygen from the iron ore. The electric arc furnace meltts the direct-reduced iron directly into steel together with steel scrap. In addition, using green hydrogen and renewable energies instead of natural gas to operate the furnace, emissions can be reduced even further, resulting in almost CO₂-free steel.
For this process, Thyssenkrupp wants to commission its first direct reduction plant in 2026 and then subsequently supply Mercedes-Benz.
“The more than 200,000 tonnes of CO₂-reduced steel per annum for the supply of our production facilities in Europe mark a considerable milestone for our ambitious sustainability goals,” said Markus Schäfer, Member of the Board of Management and CTO of Mercedes-Benz, adding: “Together with its partners, Mercedes-Benz will continue to pave the way towards a net carbon-neutral new car fleet by 2039. At the same time, we are sending an important signal for the transformation of the European steel industry.”
The first mention of the efforts to decarbonize the supply chain was reported in May when Mercedes equipped its EQE and EQS electric SUVs with sustainably sourced aluminium. Shortly afterwards, the German automotive manufacturer announced a supply contract for sustainably produced steel from the Swedish company H2 Green Steel.
0 Comments