October 22 (Renewables Now) – Swedish start-up H2 Green Steel will supply steel produced with green hydrogen to BMW AG (ETR: BMW) from 2025 as part of the German carmaker’s efforts to reduce carbon dioxide emissions in its steel supply chain by around two million tons at the end of the decade.
The two companies have signed a delivery agreement, BMW said on Wednesday.
H2 Green Steel, founded in 2020, is building a production facility in Norrbotten near the Arctic Circle and aims to produce 5 million tonnes of fossil-free steel by 2030. The Stockholm-based company will use hydrogen produced with green power to remove oxygen from iron oxide and reduce carbon dioxide emissions in the process. 95% compared to fossil fuel-based steel production. A hydrogen plant powered by green electricity from the region will be integrated into the steel production plant.
The delivery agreement between BMW and the Swedish steel company is in line with the German carmaker’s plan to adapt its product range from 2025 based on three criteria – a redefined IT and software architecture, electric powertrains and batteries and more durability throughout the vehicle’s life cycle.
In addition to green steel, BMW will also buy battery cells for its electric cars from Swedish Northvolt, which is building a gig factory in northern Sweden that will only use local wind and hydropower.