Porsche has entered into a groundbreaking agreement with the Swedish energy start-up, H2 Green Steel, to procure CO₂-reduced steel. This strategic partnership aims to enhance the environmental sustainability of Porsche models by incorporating low-emission steel in their production. H2 Green Steel was founded in 2020 with the ambition to accelerate the decarbonisation of the steel industry, using green hydrogen.
H2 Green Steel is set to revolutionise steel production by utilising renewable energy sources in Boden, Sweden, starting at the end of 2025. By 2026, Porsche, along with its primary suppliers of production materials, will receive a supply of low-emission steel from H2 Green Steel. This innovative steel will boast one of the smallest carbon footprints in the market. H2 Green Steel’s production process relies on hydrogen and electricity sourced from renewable energy, making it nearly CO₂-free.
According to H2 Green Steel, this results in a staggering 95% reduction in CO₂ emissions compared to conventional steel production with coking coal. Porsche plans to incorporate up to 317,514,66kg of this low-emission steel per year into the series production of their vehicles, significantly reducing their environmental impact. To put it into perspective, in 2022, Porsche used 199,580,643kg of steel in its vehicles.
In recent years, Porsche has continuously reduced the proportion of steel in their vehicles, increasingly opting for lightweight construction materials like aluminium. Nevertheless, steel remains a critical component in sports car manufacturing due to its exceptional mechanical properties. Energy, processes, and materials account for a significant share of CO₂ emissions in the supply chain. That is why Porsche wants to increase the use of recycled materials and green electricity in the production processes of direct suppliers as part of our decarbonisation efforts. Porsche’s commitment to reducing carbon emissions throughout its supply chain highlights its dedication to environmental sustainability and innovation in the automotive industry.
