Porsche has signed an agreement with H2 Green Steel for the supply of hydrogen-based, CO2-reduced steel to improve the emissions balance of its sports vehicles.
From 2026, Porsche and various direct Porsche suppliers of production materials will be provided with near zero-emission steel from H2 Green Steel.
The proportion of steel in Porsche’s vehicles has been continuously reduced over the past few years, and the company is currently relying on aluminium for lightweight construction.
Production at H2 Green Steel’s steel plant in Boden, Sweden, is planned to begin in 2025, with up to 35,000 tonnes of the low-emission steel produced expected to be used per year for the series production of Porsche vehicles. In comparison, 220,000 tonnes of steel were used in Porsche cars in 2022.
Barbara Frenkel, Executive Board Member for Procurement at Porsche, said, “Porsche is working towards a carbon-neutral balance sheet across the value chain for its cars by 2030.
“Energy processes and materials account for a significant share of CO2 emissions in the supply chain. That is why we want to increase the use of recycled materials and green electricity in the production processes of direct suppliers as part of our decarbonisation efforts.”
Porsche is keen to be an early user of hydrogen in the automotive industry and announced last August (2022) it is exploring future powertrain solutions covering hybrids, electric and more efficient hydrogen combustion engines.
Henrik Henriksson, H2 Green Steel’s CEO, said, “Having Porsche place an order for near zero-emission steel is a real boost both for us as a company, but also the transformation of the steel industry, which has very much been driven by the demand from the automotive industry.”
The company reported in September (2023) it had raised €1.5bn ($1.6bn) in equity so far this year, financing its large-scale green steel plant and giga-scale hydrogen electrolyser.
The proceeds will fund the construction and development of its green steel plant, which is anticipated to deliver up to 95% less CO2 emissions compared to traditional steel production.
