Mercedes-Benz to start using Green Steel “as early as 2025”

Mercedes-Benz to have an equity stake in Swedish start-up, Plans to launch CO2 free green steel cars in 2025

German automobile manufacturer, Mercedes-Benz, is all set to acquire a stake in H2 Green Steel. The Sweden-based start-up was established in 2020 with the cause to construct a carbon-neutral steel manufacturing factory in north Sweden.

Mercedes-Benz AG is going to utilise the green metal produced by H2GS into series manufacturing starting from 2025. Furthermore, it ambitions to decarbonise the furnish chain with the help of its partnered steel suppliers. The automaker also restated its plans to have a fleet of carbon-neutral and fully connected motors by 2039.

Mercedes-Benz AG says that a standard saloon of the brand uses approximately 50 percentage steel which constitutes almost 30 % of the carbon emission in production. Taking a stake in the H2GS, the brand wants to ship an important message to fast-track the transition in the steel industry and also to mass produce green steel to make it available on demand.

The automaker says that suppliers accounting for about 85 % of annual purchasing volume have signed an “Ambition letter” with the aid of agreeing to supply only carbon-neutral products in the future. It also involves metal suppliers, adds the company.

A new method of making carbon-free steel uses hydrogen and electricity created from renewable power sources. Hydrogen here plays a role in the reduction of gas. It gives off and binds oxygen from the iron ore. This process emits water as a by-product unlike the releasing of CO2 while using coking coal.

In order to limit carbon footprint in the European metal sector, H2 Green Steel intends to make 5 million tons of fossil-free steel by the end of this decade and make contributions its share.