Porsche aims to reduce emissions in its vehicle manufacturing process after signing a new deal with Swedish industrial start-up H2 Green Steel (H2GS) for the supply of carbon dioxide (CO2)-reduced steel.
From 2026, the sportscar manufacturer plans to use ‘near zero-emission’ steel produced using renewable electricity at H2GS’s Boden, Sweden plant.
Set to begin generating clean electricity at the end of 2025, H2GS claims that its ‘green’ steel will have one of the lowest carbon footprints on the market.
The company’s production process relies on hydrogen and renewably sourced electricity, resulting in steel that is almost CO2-free.
According to H2GS, its green steel emits 95% less CO2 emissions than conventional steel production with coking coal.
“Porsche is working towards a carbon-neutral balance sheet across the value chain for its cars by 2030,” explained Barbara Frenkel, Executive Board Member for Procurement at Porsche.
“CO2-reduced steel plays a key role in our sustainability strategy. With the steel from H2GS, we aim to further reduce the CO2 emissions caused by this important material.”
Up to 35,000 tonnes of the low-emission steel produced in Sweden are to be used per year for the series production of Porsche vehicles.
Although the company is using lightweight aluminium in more of its vehicles, steel is still considered one of the key elements in sports car construction due to its mechanical properties.
Energy, processes and materials account for a significant share of CO2 emissions in the supply chain, a factor that spurred Porsche to increase the use of recycled materials and green electricity in its production processes of direct suppliers.
“Few brands are as iconic as Porsche. It stands for quality and a premium product,” said Henrik Henriksson, CEO of H2GS. “It’s also a company that is working actively towards a sustainable future, with clear expectations on how the supply chain contributes to that.”
“Having Porsche place an order for near-zero emission steel is a real boost both for us as a company, but also the transformation of the steel industry, which has very much been driven by the demand from the automotive industry.”
According to the World Steel Association, the automotive sector accounts for approximately 12% of overall global steel consumption – an industry responsible for an estimated 8% of global CO2 emissions.
Decarbonisation Summit 2024: Industrial Gases and Clean Energies 3.0
The global industrial gas and equipment business has an imperative role to play in the future of clean fuels and decarbonisation. The energy transition simply won’t happen without it.
At the same time, the industry has its own activities to decarbonise and circular economies to carve out – think green air gases and bio-based carbon dioxide (CO2), as well as CO2 utilisation and e-fuels, and so much more besides.
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All of these questions and more will be in the spotlight at gasworld’s Decarbonisation Summit in April 2024. This is the Net Zero event for you, held in New York against the backdrop of the progressive US Inflation Reduction Act (IRA) and with the world’s gaze watching on.
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