Harnessing wind and hydroelectric power from the Arctic Circle: BMW Group plans to source steel produced with green power and hydrogen from northern Sweden.
The BMW Group continues to push forward with climate protection and is systematically pursuing its goal of significantly reducing CO2 emissions at their source in the supply chain. From 2025 on, the company plans to source steel produced with up to 95% less CO2 emissions and without requiring fossil resources such as coal. The BMW Group has now reached an agreement to this effect with the Swedish startup H2 Green Steel, which uses hydrogen and only green power from renewable energies for steel production. Owing to its particularly energy-intensive manufacturing process, steel production is considered one of the main sources of global CO2 emissions.
“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,” says Dr Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network. “Steel is essential for producing cars and will be no less important for future vehicle generations. Innovative technologies that enable virtually carbon-free production of steel have a significant impact on our ability to reduce CO2 emissions in our steel supply chain.”