H2 Green Steel forges green alliance with Cargill Metals to combat carbon emissions

Swedish industrial startup H2 Green Steel or H2GS, has forged a multi-year agreement with Cargill Metals, a global player in the ferrous supply chain. This strategic partnership aims to facilitate the supply of green steel and drive sustainable practices forward.

According to Cargill Metals managing director Lee Kirk, the recent announcement represents a significant achievement in the company’s pursuit of sustainability objectives.

Kirk added that there is already significant customer demand for CO2 steel, and H2 Green Steel is among the pioneering companies in the large-scale production of environmentally friendly steel.

Commenting on the recent collaboration, the commercial head of Boden Steel at H2 Green Steel, Mark Bula, said its partnership with Cargill lies in their “commitment to a responsible and sustainable connected ferrous metals supply chain.”

According to him, the partnership also presents opportunities for collaboration on emission reductions in upstream and downstream sectors, further strengthening its distribution relationship.

He claimed that with Cargill’s extensive global presence, H2 Green Steel’s products could reach markets beyond the European Union as demand increases.

“Cargill’s global reach will help H2 Green Steel’s products be available to other markets as demand grows beyond the EU,” Bula said.

Earlier this month, H2 Green Steel took a step towards reducing carbon emissions by partnering with Mercedes-Benz. It agreed to supply around 50,000 tonnes of sustainable steel to the car manufacturer’s European production operations annually.

The companies also formalized a memorandum of understanding, which paved the way for the potential supply of green steel manufactured in North America.

Near-zero CO2 emissions

Steel production at the H2GS production site achieves near-zero CO2 emissions through an innovative manufacturing process. In contrast, on average, traditional steel production using a blast furnace emits over two tons of CO2 per ton.

The new process employed by H2GS relies on hydrogen and electricity sourced entirely from renewable energy, eliminating the need for coking coal in steel production. Hydrogen is a reduction agent, facilitating the release and binding of oxygen from iron ore.

Unlike coking coal, this process generates water vapor instead of CO2. H2GS aims to achieve a carbon footprint of 0.4 tons of CO2 per ton of steel at the beginning of the supply chain.