H2 Green Steel has signed a 7-year binding agreement with ZF, one of the biggest suppliers to the automotive industry globally. Deliveries of near zero emissions steel are set to begin in 2026.
ZF directly and indirectly processes around 2.5 million tonnes of steel per year worldwide. This agreement covers a significant share of ZF’s yearly steel volumes, making it strategically important in the company’s efforts to decarbonise its operations.
ZF has a strong sustainability strategy and aims to be climate neutral by 2040, including value chain emissions. This agreement, valued at 1.5 billion euros, is expected to reduce CO2 emissions by close to 2.3 million tonnes compared to traditional steelmaking processes.
H2 Green Steel will work closely with ZF’s sub-suppliers, with the goal of driving the steel industry transformation as an integrated approach in the entire supply chain.
A true milestone contract
“This is a true milestone contract for H2 Green Steel, not the least because of its size. ZF’s role in the automotive ecosystem is undeniable and they are a true partner to H2 Green Steel where we also see potential to move into other regions, like North America,” says Carl-Erik Lagercrantz, vice chairman of H2 Green Steel.