BERLIN (dpa-AFX) - Schaeffler (SCFLF.OB), a German automotive and industrial supplier, said on Tuesday that it has inked a long-term deal with Swedish start-up, H2greensteel to purchase 100 thousand tons of the virtually CO2-free steel, which is produced using hydrogen, on an annual basis from 2025.
Andreas Schick, Chief Operating Officer at Schaeffler AG commented: 'We process a significant amount of steel and view this as a crucial driver in supporting the decarbonization. Already today Schaeffler is relying increasingly on low CO2 steel production processes among its suppliers. An essential element is also the use of the circular economy, which we want to implement consistently.'
The agreement is set for the long-term and includes the delivery of strip steel. The steel produced in Sweden requires non fossil fuels and reduces Schaeffler's annual CO2 emissions c. p. by up to 200 thousand tons.
Founded in 2020, H2greensteel (H2GS) aims to produce five million tons of virtually CO2-neutral steel annually in Sweden by 2030.
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