Sweden – A formal agreement regarding the delivery of CO2-reduced steel has been signed by BMW Group and H2 Green Steel.
The agreement includes recycling and end-of-life management initiatives and addresses upstream scope 3 emissions for BMW Group. In order to establish a legally enforceable agreement, BMW Group and H2 Green Steel also decided to work together technically. This will involve a number of initiatives that will help BMW Group achieve its ambitious CO2 reduction goals and address its Science Based Targets.
The GHG Protocol’s Scope 1, 2, and upstream Scope 3 standards are adhered to by H2 Green Steel. In its client contracts, the company has a gross embedded carbon emission intensity requirement per tonne of steel. The BMW Group’s material supply chain and its upstream Scope 3 emissions will be impacted by H2 Green Steel’s efforts to cut emissions.
Further ensuring circularity, recycling scrap is a crucial component of the equation. As a result, in a ground-breaking step, both businesses have consented to return 40% of the pre-consumer steel scrap of the amounts to H2 Green Steel’s electric arc furnaces for recycling.
The concept of “green steel” by H2 Green Steel emphasizes the need of enhancing circularity as well as actual CO2 reductions. Therefore, in a manufacturing process that employs electricity from renewable energy sources, a sizable proportion of green virgin iron and scrap must be combined to create green steel. The overall CO2 emissions from such a process must be more than 90% lower than those from a blast furnace technique used in conventional steelmaking.