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Schaeffler AG: Schaeffler to buy green steel from Swedish start-up company H2greensteel

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DGAP-News: Schaeffler AG / Key word(s): Sustainability
09.11.2021 / 08:15
The issuer is solely responsible for the content of this announcement.

Schaeffler to buy green steel from Swedish
start-up company H2greensteel

 

- Schaeffler signs off-take agreement with H2greensteel for supply of green steel

- From 2025, Schaeffler to source 100,000 tons of the steel, which is produced virtually CO2-free, on an annual basis

- The ordered green steel reduces Schaeffler's CO2 emissions c. p. by up to 200,000 tons per year

- The agreement is a first major step to make Schaeffler's supply chain carbon-neutral by 2040


Herzogenaurach, Germany | November 9, 2021 | The automotive and industrial supplier Schaeffler has entered into an agreement with Swedish start-up company H2greensteel to purchase 100,000 tons of the virtually CO2-free steel, which is produced using hydrogen, on an annual basis with effect from 2025. This makes Schaeffler the first tier 1 supplier worldwide to become a customer of the innovative start-up company. The agreement is set for the long-term and includes the delivery of strip steel. The steel produced in Sweden requires non fossil fuels and reduces Schaeffler's annual CO2 emissions c. p. by up to 200,000 tons. The agreement is a first major step to make Schaeffler's supply chain carbon-neutral by 2040. "Steel purchasing is strategically important to Schaeffler," states Andreas Schick, Chief Operating Officer at Schaeffler AG. "We process a significant amount of steel and view this as a crucial driver in supporting the decarbonization. Already today Schaeffler is relying increasingly on low CO2 steel production processes among its suppliers. An essential element is also the use of the circular economy, which we want to implement consistently."

H2greensteel (H2GS) was founded in 2020 and aims to produce five million tons of virtually CO2-neutral steel annually in Sweden by 2030. "We are delighted to have found a global and experienced partner in Schaeffler, to support us in our goal of decarbonizing the steel industry, and with whom we can work toward making the world more sustainable for the future," states Henrik Henriksson, CEO of H2GS. As a greenfield project, the company is planning a new steel site with networked and digital production that will produce "green steel" in the towns of Boden and Luleå. The first European steelworks in around 40 years is being constructed there, together with a dedicated production facility for hydrogen generation. The production of green steel is energy-intensive and must be done from sustainable sources. Northern Sweden offers excellent conditions for this. The production of steel without carbon dioxide is realized by H2GS through the use of the direct reduction method, in which hydrogen produced from renewable energies is used instead of coking coal, thus enabling a 95 percent reduction in the CO2 emissions produced with previous methods. The founder and majority shareholder of H2GS is Vargas Holding, a co-founder and major shareholder of the Swedish battery cell manufacturer Northvolt.

Klaus Rosenfeld, Chief Executive Officer of Schaeffler AG, says: "The use of green hydrogen for the direct reduction of iron ore is a crucial component in making steel clean and sustainable in the future. Hydrogen is an important technology and growth area for Schaeffler. Against this background, the partnership with H2greensteel is a very important step for us in advancing the topic of sustainability."


Schaeffler Group - We pioneer motion
As a leading global supplier to the automotive and industrial sectors, the Schaeffler Group has been driving forward groundbreaking inventions and developments in the fields of motion and mobility for over 70 years. With innovative technologies, products, and services in the fields of CO₂-efficient drives, electric mobility, Industry 4.0, digitalization, and renewable energies, the company is a reliability partner for making motion and mobility more efficient, intelligent, and sustainable. The technology company produces precision components and systems for drive train and chassis applications as well as rolling and plain bearing solutions for a multitude of industrial applications. The Schaeffler Group generated sales of approximately EUR 12.6 billion in 2020. With around 83,900 employees, the Schaeffler Group is one of the world's largest family companies. With more than 1,900 patent applications in 2020, Schaeffler is Germany's second most innovative company according to the DPMA (German Patent and Trademark Office).


Contact

Dr. Axel Lüdeke
Head of Group Communications & Public Affairs
Schaeffler AG,
Herzogenaurach, Germany

phone: +49 9132 82 8901
email: axel.luedeke@schaeffler.com

Renata Casaro
Head of Investor Relations
Schaeffler AG,
Herzogenaurach, Germany

phone: +49 9132 82 4440
email: ir@schaeffler.com


Daniel Pokorny
Head of Communications Technology,
Innovation & Digitalization
Schaeffler AG,
Herzogenaurach, Germany

phone: +49 9132 82 88708
email: daniel.pokorny@schaeffler.com


Susanne Sievers
Investor Relations

Schaeffler AG,
Herzogenaurach, Germany

phone: +49 9132 82 4440
email: ir@schaeffler.com


09.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

Schaeffler AG

Industriestr. 1-3

91074 Herzogenaurach

Germany

Phone:

09132 - 82 0

E-mail:

ir@schaeffler.com

Internet:

www.schaeffler.com

ISIN:

DE000SHA0159

WKN:

SHA015

Indices:

SDAX

Listed:

Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

EQS News ID:

1247274


 

End of News

DGAP News Service

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