The partnership with HSGS is another step towards CO2 neutrality, which Mercedes-Benz is pursuing as part of Ambition 2039, its goal to achieve a fully connected and CO2 neutral vehicle fleet in 2039 – eleven years earlier than the EU legislation requires.
“As a preferred partner of the start-up, we will be launching green steel in various vehicle models as early as 2025,” says Markus Schäfer, Member of the Board of Management of Daimler AG and Mercedes-Benz AG.
A Mercedes‑Benz sedan is for example made from about 50% steel, which accounts for about 30% of CO2 emissions in production. With the partnership, Mercedes-Benz is tackling one of the biggest challenges in the automotive industry on the road to CO2 neutrality.
H2 Green Steel (H2GS) was founded in 2020, aiming to build a large-scale fossil-free steel production facility in northern Sweden. H2GS will produce 5 million tons of fossil-free steel by 2030.
In the new process, the supplier uses hydrogen and electricity from 100 % renewable energy sources instead of coking coal in steel production. The hydrogen serves as a reduction gas, which releases and binds the oxygen from the iron ore. Unlike the use of coking coal, this does not produce CO2, but water.