Volkswagen to source hydrogen-based steel from Salzgitter

Salzgitter to start producing low-CO2 steel by 2025, resulting in 95% CO2 saving.

Volkswagen Group and Salzgitter AG signed an MoU under which Volkswagen will become one of the first customers for the low-CO2 steel that Salzgitter AG plans to produce on a new production route in Lower Saxony from the end of 2025.

According to Salzgitter AG, this will enable over 95% of CO2 emissions in steel production to be saved in future based on hydrogen and renewable energies. The Volkswagen Group plans to use the low-CO2 steel from the end of 2025 in important future projects such as the Trinity e-model, which will be produced in Wolfsburg from 2026.

For Volkswagen, reducing CO2 emissions in the supply chain is a key element in the Group’s strategy to become a carbon-neutral mobility provider by 2050 gradually.

In future projects such as Trinity – the fully connected electric car of the next generation, which will be manufactured in Wolfsburg from 2026 – the use of CO2-reduced steel can significantly contribute to improving the overall CO2 balance sheet.

By the end of 2022, both partners will contractually agree on purchase quantities for the low-CO2 steel from 2025 to 2030.

Salzgitter AG has massively reduced CO2 emissions in steel production with the transformation program SALCOS® – Salzgitter Low CO2-Steelmaking. In contrast to pig iron production using carbon-based blast furnaces, the steel and technology group wants to produce steel in future using green hydrogen and renewable energies on a new production route.

Last year, Volkswagen AG processed sample quantities of CO2-reduced steel from the Salzgitter AG for the first time. This is produced on the scrap-based electric steel route in Peine and has a 66% reduced CO2 footprint. This year, Volkswagen plans to purchase a further 3,000 tonnes.

Another aspect of the joint agreement is the goal of establishing a closed-loop recycling system for steel between Volkswagen’s main plant in Wolfsburg and the integrated steelworks in Salzgitter.

Ethan Mandel

Ethan is the special correspondent for Europe covering the hydrogen industry for H2 Bulletin. Please click on the email icon to contact me via email or follow me on social media. I am reachable on Phone: 02081237815
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