Raw material Handling: Steel coil storing inside warehouse; Shutterstock ID 563304574; bn: 4300005334 ; bestell_nummer: ; client: Albert Kunzer; other: im Auftrag von T. Fiddelke
ZF is working flat out to further reduce its environmental footprint. One of the most important levers for this is the purchase of sustainably produced materials such as steel. The technology group has therefore concluded a long-term supply agreement with the Swedish start-up H2 Green Steel. Between 2025 and 2032, the Scandinavian company will supply ZF with 250,000 tons of steel annually from its production facility in northern Sweden. This corresponds to ten percent of ZF’s current steel requirements and saves around 475,000 tons of CO2 per year.
Worldwide, ZF directly and indirectly processes around 2.5 million tons of steel per year. To achieve its CO2 reduction targets, the company has signed an agreement with H2 Green Steel. The Swedish start-up launched in 2021 with the aim of accelerating the decarbonization of heavy industry, starting with the steel industry, through new production processes and technologies and the use of green hydrogen.
The steel will be produced in a fully integrated production process using end-to-end digitalization, electricity from renewable energy sources and green hydrogen instead of coal. In conventional steelmaking, iron ore is reduced by heating it together with coal. In the process, a chemical reaction occurs that separates the oxygen from the iron, producing and releasing CO2. In the production process of H2 Green Steel, on the other hand, green hydrogen reacts with iron ore in a similar way to carbon, resulting in the extraction of oxygen. Instead of CO2, however, only water is produced as the main byproduct.
“With the introduction of low-CO2 production processes and sustainable products, the steel industry is undergoing a profound transformation. Innovative companies with new concepts are in demand. We support this change through our long-term supply agreement with H2 Green Steel,” says Daniele Pontarollo, Head of Group-wide Materials Management at ZF. ZF is also in dialogue with other leading steel suppliers to explore green steel sourcing opportunities.
“We are convinced that by working closely with sustainable suppliers, we can significantly and sustainably reduce upstream emissions. The cooperation with H2 Green Steel is an excellent example of this,” says Dr. Michael Karrer, who is responsible for sustainability, environmental management and occupational safety in the ZF Group. www.zf.com
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