Porsche AG and Swedish industrial start-up H2 Green Steel have signed an agreement to supply steel with reduced CO 2 content. The goal is to further improve the emissions balance of Porsche vehicles through the use of steel with reduced CO 2 content.
H2 Green Steel plans to produce steel using renewable electricity in Boden, Sweden, starting at the end of 2025. From 2026, Porsche and various direct suppliers of Porsche production materials will supply virtually zero-emission steel. This agreement marks the second contract between H2 Green Steel and the Volkswagen Group, following the Scania contract previously announced in 2023.
The material will have one of the lowest carbon dioxide emissions on the market. H2 Green Steel relies on an innovative production process using hydrogen and electricity from renewable energy sources. Steel production therefore requires virtually no CO₂ emissions. According to H2 Green Steel, this results in a 95 percent reduction in CO₂ emissions compared to traditional steel production using coking coal. Up to 35,000 tonnes of low-emission steel produced in Sweden per year will be used for series production of Porsche vehicles. By comparison, Porsche vehicles used 220,000 tonnes of steel in 2022.
“Porsche is working to achieve carbon neutrality across the entire value chain of its vehicles by 2030. Low CO2 steel plays a key role in our sustainability strategy. With H2 Green Steel, we aim to further reduce the CO2 emissions caused by this important material,” said Barbara Fraenkel, Member of the Executive Board of Purchasing at Porsche AG.
The share of steel in Porsche vehicles has been steadily decreasing in recent years . Meanwhile, Porsche says it is increasingly relying on aluminum for lightweight construction. However, steel remains one of the key elements in sports car construction due to its excellent mechanical properties. “Energy, processes and materials account for a significant portion of CO2 emissions in the supply chain. That's why we want to increase the use of recycled materials and clean electricity in direct supplier production processes as part of our decarbonization efforts,” adds Frenkel.
“Few brands are as iconic as Porsche. This is a quality and premium product. It is also a company that is actively working towards a sustainable future and has clear expectations about how the supply chain will contribute to this. The order for virtually zero-emission steel from Porsche is a real boost for us as a company and for the transformation of the steel industry, which is largely driven by demand from the automotive industry,” said Henrik Henriksson, CEO of H2 Green Steel.
