Economy

H2 Green Steel Eyes Production in N. America for Mercedes


H2 Green Steel has signed a memorandum of understanding with Mercedes-Benz for the potential supply of green steel made in North America.  

H2 Green SteelIn the same news release on Wednesday, the Swedish sustainable steelmaker said it has signed a binding agreement with Germany-based Mercedes-Benz to deliver ~50,000 metric tons of green steel annually for use in the automaker’s European plants.

Henrik Henriksson, CEO of H2 Green Steel, said the company has spoken to different stakeholders in both Canada and the US for some time about the possibility of leveraging a large supply of renewable electricity. This would be for the production of green hydrogen and green sponge iron that could feed “sustainable steel production.”

Regarding the automaker, Henriksson said in the release that Mercedes-Benz is a “partner with whom we can raise the bar when it comes to supply-chain emissions, circularity and social sustainability.”

The two companies have also agreed to work together “to enable a long-term supply of green steel produced in North America for Mercedes-Benz’s manufacturing plants in North and South America,” H2 Green Steel said, adding: “By doing so, the companies will demonstrate the feasibility and value of a green steel supply chain.”  

Mercedes-Benz was an early investor in H2 Green Steel, according to the release.

The steel, described as “almost CO2 free,” for Mercedes-Benz’s European operations will be produced at H2 Green Steel’s plant in Boden, in northern Sweden.

By Ethan Bernard, ethan@steelmarketupdate.com

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