Photo: Matthias Leitzke
At the International Suppliers Fair (IZB) in Wolfsburg, Germany, Volkswagen Group and thyssenkrupp Steel signed a memorandum of understanding (MoU) for the planned supply to Volkswagen Group of low-carbon steel from thyssenkrupp Steel’s future direct reduction plant.
Pioneering technology for a sustainable future
thyssenkrupp Steel’s direct reduction plant, which is scheduled to go into operation in 2027, will be powered by hydrogen and green electricity, thereby enabling a significantly reduced carbon footprint compared to conventional steel production. The plant will initially be ramped up using natural gas as a reducing agent and will gradually be converted to hydrogen. The resulting product, bluemint® Steel, will be certified according to recognised standards and can achieve the LESS label A when operated with 100% renewably produced hydrogen. This classification, developed by the German Steel Association flanked by Germany’s Federal Ministry for Economic Affairs and Climate Action, provides a full picture of a steel product’s climate impacts and documents its almost emission-free production.
“Signing this memorandum of understanding marks an important step on our path to decarbonizing key industrial processes in Germany. Our long-standing partnership with Volkswagen Group demonstrates that, alongside our technical development work, we can also collaborate in making great strides toward a sustainable future,” says Dennis Grimm, Spokesman of the Executive Board of thyssenkrupp Steel.
Advantages for the automotive industry
Volkswagen can benefit significantly from this innovative process to avoid CO2 emissions because 15 to 20 percent of an electric vehicle’s emissions are accounted for by the steel used. Moreover, this decarbonization concept allows the manufacture of the full product portfolio in accordance with the usual specifications and in premium quality. The CO2-reduced steel helps the car manufacturer to reduce CO2 emissions in the Scope 3 category and thus make an important contribution to achieving its own climate targets. Supplies are scheduled to start in 2028 and will then be expanded step by step.
“Decarbonizing supply chains is a decisive factor for the Volkswagen Group on the road to carbon neutrality. We want to achieve this goal by 2050 at the latest, and using low-carbon steel is an important step in making supply chains at Volkswagen Group even more environmentally friendly going forward. This MoU with thyssenkrupp is an important building block in our strategic focus on the use of low-carbon steel,” says Dirk Große-Loheide, Member of the Board of Management of the Volkswagen Brand responsible for Procurement and Member of Volkswagen AG’s Extended Executive Committee.
