thyssenkrupp Steel and Volkswagen Group have joined forces to advance green steel production. thyssenkrupp Steel’s direct reduction plant, set to begin operations in 2027, will utilize hydrogen and green electricity, significantly lowering the carbon footprint compared to traditional steel manufacturing methods. Initially, the plant will use natural gas as a reducing agent, gradually transitioning to hydrogen over time.
The steel produced, known as bluemint® Steel, will be certified according to recognized standards and can attain the LESS label A rating when using 100% renewable hydrogen. This classification, developed by the German Steel Association in collaboration with Germany’s Federal Ministry for Economic Affairs and Climate Action, provides a comprehensive overview of a steel product’s climate impact and documents its near-zero emissions production.
Dennis Grimm, Spokesman of the Executive Board of thyssenkrupp Steel, said in the official statement, “Signing this memorandum of understanding marks an important step in decarbonizing key industrial processes in Germany. Our long-standing partnership with Volkswagen Group demonstrates that, alongside our technical development work, we can also collaborate in making great strides toward a sustainable future.”
Volkswagen stands to significantly reduce CO2 emissions through Thyssenkrupp Steel’s innovative green steel process, as steel accounts for 15-20% of an electric vehicle’s emissions. This decarbonization approach ensures premium-quality steel production while meeting standard specifications. By using CO2-reduced steel, Volkswagen can lower emissions in the Scope 3 category, supporting its climate targets. The green steel supply will begin in 2028, with gradual expansion planned thereafter
“This MoU with thyssenkrupp is an important building block in our strategic focus on the use of low-carbon steel,” says Dirk Große-Loheide, Member of the Board of Management of the Volkswagen Brand responsible for Procurement and Member of Volkswagen AG’s Extended Executive Committee.
The partnership between Thyssenkrupp Steel and Volkswagen Group is driving the mobility transition through their planned use of CO2-reduced steels. This partnership is expected to demonstrate how innovative technologies and strategic alliances can deliver sustainable solutions.