Industrial, Sourcing Renewables  -  October 21, 2021

BMW to Source Steel Made with Green Power

The BMW Group announced Oct. 20 an agreement to source steel made using hydrogen and green power to reduce the emissions associated with its supply chain.

The automaker plans to source steel produced with 95% less CO2 emissions and without fossil fuels starting in 2025. This new agreement with the Swedish startup H2 Green Steel, which will produce the steel using hydrogen generated from hydroelectric and wind power, represents a step toward that goal.

BMW and H2 Green Steel also agreed to create a closed-loop material cycle, in which H2 Green Steel will take back sheet metal remnants and process them so that they can be shipped back to the plant as new steel rolls. Because of its reusability, secondary steel like this can lower emissions by an average of 50-80% compared to primary material. BMW already uses between 20% and 100% secondary steel in its vehicles.

“Our goal is to reduce CO2 emissions in our steel supply chain by about two million tonnes by 2030. Sourcing steel produced using hydrogen and green power can make a vital contribution to this,” Dr. Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network, said in a statement. “Steel is essential for producing cars and will be no less important for future vehicle generations. Innovative technologies that enable virtually carbon-free production of steel have a significant impact on our ability to reduce CO2 emissions in our steel supply chain.”

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