BERLIN: BMW reached an agreement with the Swedish start-up H2 Green Steel, which uses hydrogen and green electricity from renewable energies exclusively for its steel production, the German car-maker announced on Saturday.
From 2025 onwards, the German car-maker plans to source climate-friendly steel whose production generates up to 95 percent fewer CO2 emissions and does not require fossil raw materials such as coal, according to BMW.
“Our goal is to reduce CO2 emissions in our steel supply chain by about two million tonnes by 2030. Sourcing steel produced using hydrogen and green power can make a vital contribution to this,” said Andreas Wendt, board member of BMW responsible for purchasing and suppliers.
Daimler’s flagship brand Mercedes-Benz also plans to purchase climate-friendly steel from H2 Green Steel. The German carmaker already announced in May to invest a single-digit million figure as a first step.