Porsche Will Use Low Carbon Steel In Sports Cars

Porsche intends to reduce emissions in its vehicle manufacturing process after signing a new agreement with Swedish industrial start-up H2 Green Steel (H2GS) for the supply of up to 35,000 tonnes per year of low-carbon steel, with the goal of reducing Porsche vehicles' emissions footprint. 

The agreement, which will begin shipments in 2026, will account for a significant portion of Porsche's steel supply, with the company's total steel usage in its vehicles reaching 200,000 tonnes last year.

Green steel, according to H2GS, emits 95% less CO2 emissions than conventional steel production using coking coal. Porsche set a goal in 2021 to achieve net carbon neutrality by 2030.

While the company has been reducing the proportion of steel in its vehicles and relying more on aluminium for lightweight construction, it has noted that steel remains an important material for sports car construction due to its mechanical properties.
Barbara Frenkel, Executive Board Member for Procurement at Porsche AG, said:

“Porsche is working towards a carbon-neutral balance sheet across the value chain for its cars by 2030. CO2-reduced steel plays a key role in our sustainability strategy. With the steel from H2 Green Steel, we aim to further reduce the CO2 emissions caused by this important material.”

Up to 35,000 tonnes of Swedish low-emission steel will be used per year in the series production of Porsche vehicles. Despite the fact that the company is using lightweight aluminium in more of its vehicles, steel is still regarded as a critical component in sports car construction due to its mechanical properties.

Energy, processes, and materials account for a significant portion of CO2 emissions in the supply chain, prompting Porsche to increase the use of recycled materials and green electricity in its direct suppliers' production processes.

H2 Green Steel, founded in 2020, is building its flagship green steel plant in Boden, Sweden, with a giga-scale green hydrogen plant integrated into the steel production facility.

To remove the oxygen from iron oxide, the company uses hydrogen produced using green power, avoiding the majority of the CO2 emissions normally produced, and it uses electricity generated from 100% renewable sources for the energy requirements generated during the manufacturing process.

According to H2 Green Steel, its production process emits up to 95% less CO2 than traditional steel production using coking coal.

Porsche is the most recent buyer of H2 Green Steel in the automotive sector, following Volvo, Scania, Mercedes-Benz, and BMW.