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H2 Green Steel and KIRCHHOFF Automotive in €130 million deal for supply near zero emissions steel

Global supplier to the automotive industry signs 7-year agreement with H2 Green Steel

By teaming up with the Swedish impact company H2 Green Steel for the delivery of near zero emissions steel from Boden, KIRCHHOFF Automotive takes further steps to decarbonize its supply chain and to achieving its sustainability goals.

KIRCHHOFF Automotive works ambitiously with sustainability, including its supply chain where steel is the main component in its products, accounting for circa 50% of its material purchases. 90% of its carbon footprint is currently determined by the use of conventionally produced steel and aluminum. Based on orders for upcoming generations of vehicles from international car manufacturers, KIRCHHOFF Automotive sees that the demand for safe and sustainable body-in-white parts will increase strongly in the coming years.

The order from KIRCHHOFF Automotive will see deliveries of green steel from H2 Green Steel’s Boden plant starting 2027, to KIRCHHOFF Automotive’s plants across Europe.  

H2 Green Steel is committed to the Scope 1, 2 and upstream Scope 3 requirements as defined in the GHG Protocol. The company has a gross embodied carbon emission intensity obligation per tonne of steel included in its customer contracts and the continuous work to reduce emissions will impact KIRCHHOFF Automotive’s material supply chain and its upstream Scope 3 emissions.

The two companies will also work together on a circularity initiative where the aim is to send at least 30% of the steel scrap volumes back to H2 Green Steel's electric arc furnaces in Boden for recycling.

H2 Green Steel recognizes KIRCHHOFF Automotive's pioneering role in advancing automotive sustainability

"While many suppliers in the automotive industry are adapting to the ambitious visions of progressive car makers, companies such as KIRCHHOFF Automotive are not just adapting but actively leading the way by setting their own vision. KIRCHHOFF Automotive stands out by blending its remarkable legacy with a forward-thinking approach, where sustainable products represent more than just a competitive edge; they are essential for achieving climate and sustainability targets", says Carl-Erik Lagercrantz, vice chairman of H2 Green Steel.