Steel Markets
August 20, 2022
H2 Green Steel and BMW Partner to Reduce Emissions
Written by Becca Moczygemba
BMW Group and Swedish steelmaking start-up H2 Green Steel (H2GS) have solidified their contract for CO2-reduced steel. Roughly 40% of pre-consumer steel scrap will be returned to H2GS’s electric arc furnaces (EAF) to be recycled, according to the deal.
H2GS will provide green steel to the German auto manufacturer, and requires CO2 reductions and improved circularity to produce it. This means material must be produced by utilizing a significant amount of green, unspoiled iron and scrap, and processed with electricity from a renewable energy source. The total amount of carbon emissions are required to be 90% less than what the traditional steelmaking process would produce when using a blast furnace.
