BMW has signed a final agreement with H2 Green Steel for the delivery of low carbon steel.
The agreement addresses the automotive giant’s upstream Scope 3 emissions and includes recycling and end-of-life management measures.
The two companies have committed to have 40% of the pre-consumer steel scrap of the volumes returned to H2 Green Steel’s electric arc furnaces for recycling.
They have also agreed on technical co-operation that will include several measures to address BMW Group’s science-based targets and contribute to meeting its carbon reduction goals.
According to H2 Green Steel, actual CO2 reductions and improving circularity are both key towards achieving CO2-reduced green steel.
It believes green steel must be produced from a combination of a significant amount of green virgin iron and scrap in a production process that uses electricity from renewable energy sources.
The total carbon emissions in such a process must be more than 90% lower than that of traditional steelmaking in a blast furnace process.
Henrik Henriksson, CEO of H2 Green Steel said: “We are on a mission to decarbonise the steel industry. Working with progressive companies like BMW Group, pushes us to be better both in our own operations and our value chain. It also pushes us to be an even better partner to our customers and raises the bar for industry peers on the decarbonisation journey.”