Porsche AG is on its way to becoming a green car. As part of its sustainability strategy, the carmaker from Zuffenhausen will soon be using virtually CO₂-free steel in its luxury cars. This will be supplied from 2026 by the Swedish industrial start-up H2 Green Steel, which will begin producing green steel made from 100 percent renewable energy at the end of 2025.
H2 Green Steel plans to produce steel using only green hydrogen and green electricity from the end of 2025 at its all-new steel plant in Boden, Sweden, which operates using the DRI process. From 2026, Porsche and various direct Porsche suppliers of production material are to be supplied with H2 Green Steel’s low-CO₂ steel.
The material is said to have one of the lowest CO2 footprints on the market, with just under 100 kg of CO₂ per ton of steel. To achieve this, H2 Green Steel relies on an innovative manufacturing process using hydrogen and electricity from renewable sources. The production of the steel is thus virtually CO₂-free. According to H2 Green Steel, this results in up to 95 percent fewer CO₂ emissions than conventional steel production with coking coal. Under the supply agreement, H2 Green Steel will deliver up to 35,000 metric tons of the lower-CO₂ steel per year for series production of Porsche vehicles. By comparison, 220,000 tons of steel were installed in Porsche vehicles in 2022.
“Porsche is working towards a balance sheet CO₂-neutral value chain for its vehicles in 2030. CO₂-reduced steel plays a key role in our sustainability strategy. With steel from H2 Green Steel, we are striving to further reduce the CO₂ emissions caused by this important material,” explains Barbara Frenkel, Member of the Executive Board for Procurement at Porsche AG.
Porsche’s strategy for the future
Barbara Frenkel, Member of the Executive Board (Source: Porsche)
The proportion of steel in Porsche vehicles has been continuously reduced in recent years. In the meantime, Porsche is increasingly relying on aluminum for lightweight construction. However, steel is still one of the key elements in sports car construction because of its outstanding mechanical properties.
“Energy, processes and materials account for a significant proportion of CO₂ emissions in the supply chain. That is why we want to increase the use of recycled materials and green electricity in the production processes of our direct suppliers in order to contribute to our goal of decarbonization,” Frenkel concluded.
