ZF directly and indirectly produces approximately 2.5 million tonnes of steel per year. H2GS notes that this agreement covers a significant portion of ZF's annual steel volume and is of strategic importance in the company's efforts to decarbonise its operations.
ZF aims to be climate neutral by 2040, including value chain emissions. The deal, valued at €1.5 billion ($1.63 billion), is expected to reduce CO2 emissions by about 2.3 million metric tonnes compared to conventional steelmaking processes.
ZF board member Stephan von Schuckmann said: "No one can tackle climate change alone, but by working together with partners we can achieve a lot. H2 Green Steel is a good example of startups working together with established players to bring about change faster than the established industry has managed. For ZF, this is a strategic alliance in our important endeavour to reduce CO2 emissions from our supply chain."
"This is a truly landmark contract for H2 Green Steel, not least because of its size. ZF's role in the automotive ecosystem is undeniable and we are a true partner that we see potential to expand into other regions such as North America," says Henrik Henriksson, CEO of H2 Green Steel.
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