H2 Green Steel signs binding offtake deal with Mercedes-Benz

Swedish industrial start-up H2 Green Steel has signed a binding agreement with Mercedes-Benz Group AG (ETR:MBG) to deliver about 50,000 tonnes of green steel a year for the carmaker’s European press shops, the two said on Wednesday.

Mercedes-Benz is an equity investor in the Swedish firm, which plans to start production in 2025. The steel will be supplied from H2 Green Steel’s green hydrogen-powered iron and steel plant in Boden, northern Sweden and will be launched in various Mercedes-Benz vehicle models.

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In addition, the companies have signed a memorandum of understanding to seek to create a supply chain for green steel produced in North America for local Mercedes-Benz factories.

The agreements are a step towards Mercedes-Benz’s objective of making its fleet of new cars net carbon-neutral by 2039.