H2 Green Steel signed agreement with Kirchhoff Automotive to supply green steel

The cost of the 7-year agreement was €130 million

Kirchhoff Automotive, a global automotive supplier, has signed a 7-year, €130 million agreement with Swedish startup H2 Green Steel to supply green steel. This is stated in the message of H2 Green Steel.

«The message from our customers is clear: they want to see products with low CO₂ emissions,» said Michael Rank, global executive vice president of procurement at Kirchhoff Automotive.

The order from Kirchhoff includes the supply of green steel from the H2 Green Steel plant in Boden starting in 2027 to the German automotive supplier’s plants across Europe.

In 2022, Kirchhoff Automotive began the process of determining where greenhouse gas emissions are located in its supply chain (Scope 3), both at suppliers and customers. The company also has the overall goal of establishing a high level of sustainability in the automotive supply chain.

«Suppliers to the automotive industry have to follow the ambitious plans set by progressive automakers. However, we also have a group of companies that are ahead of the curve, following their own compass. Kirchhoff Automotive is one such company. They combine an amazing heritage with a strong focus on the future, where environmentally friendly products are not only a competitive advantage, but also important for the climate and sustainability goals,» Stefan Flapper, Head of Commercial at H2 Green Steel, says.

H2 Green Steel complies with Scope 1, 2 and Scope 3 emission requirements. The company has commitments to gross carbon intensity per ton of steel included in its contracts with customers, and continuous efforts to reduce them will have a positive impact on Kirchhoff’s environmental balance sheet.

As GMK Center reported earlier, CBAM is an important aspect of the company’s business model, H2 Green Steel noted. Green steel can become competitive with carbon-intensive counterparts within ten years