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Kirchhoff Automotive Partners with H2 Green Steel
©Kirchhoff

Kirchhoff Automotive Partners with H2 Green Steel

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Autor: Birgit Schmunk

Datum: 23. Jan. 2024

23 January 2024 | Kirchhoff Automotive has entered into a €130 million agreement with H2 Green Steel for the provision of nearly zero-emission steel. The global automotive industry supplier has committed to a 7-year partnership with H2 Green Steel, a Swedish impact company, to source environmentally friendly steel from Boden.

This collaboration represents Kirchhoff Automotive’s dedication to decarbonizing its supply chain and advancing its sustainability objectives.

“The message from our customers is clear, they want to see products with lower CO2 footprint. This matches our ambitions to be in the forefront of sustainable development in the industry, as well as our legacy where sustainability has always been important. It’s great to be able to work with a new player on the market and the team at H2 Green Steel have really pushed the steel industry to do more and move faster in terms of sustainability”, says Michael Rank, Global Executive Vice President Procurement, Kirchhoff Automotive.

Kirchhoff Automotive works ambitiously with sustainability, including its supply chain where steel is the main component in its products, accounting for circa 50% of its material purchases. 90% of its carbon footprint is currently determined by the use of conventionally produced steel and aluminum. Based on orders for upcoming generations of vehicles from international car manufacturers, Kirchhoff Automotive sees that the demand for safe and sustainable body-in-white parts will increase strongly in the coming years.

The order from Kirchhoff Automotive will see deliveries of green steel from H2 Green Steel’s Boden plant starting 2027, to Kirchhoff Automotive’s plants across Europe.

As early as 2022, Kirchhoff Automotive began a process of determining the location of greenhouse gas emissions in their supply chain (Scope 3), both upstream at suppliers and downstream at customers. The company also has an overall goal to establish a high level of sustainability in the automotive industry’s supply chains which is also underlined by the fact that Kirchhoff Automotive is one of the founding members of the “Responsible Supply Chain Initiative RSCI e. V.” association.

“Suppliers to the automotive industry have to follow the ambitious plans that progressive car makers have set out. However, we also have a group of companies that run before the rest as they follow their own compass. Kirchhoff Automotive is one such company. They combine their impressive legacy with a strong direction for the future where sustainable products are as much a competitive edge, as they are important for the climate and sustainability targets”, says Stephan Flapper, Head of Commercial, H2 Green Steel.

H2 Green Steel is committed to the Scope 1, 2 and upstream Scope 3 requirements as defined in the GHG Protocol. The company has a gross embodied carbon emission intensity obligation per tonne of steel included in its customer contracts and the continuous work to reduce emissions will impact Kirchhoff Automotive’s material supply chain and its upstream Scope 3 emissions.

The two companies will also work together on a circularity initiative where the aim is to send at least 30% of the steel scrap volumes back to H2 Green Steel’s electric arc furnaces in Boden for recycling.

About H2 Green Steel

H2 Green Steel (H2GS AB) was founded in 2020 with the ambition to accelerate the decarbonization of the steel industry, using green hydrogen. Steel, which is one of the world’s largest carbon dioxide emitters, is the company’s first business vertical. The founder and largest shareholder of H2 Green Steel is Vargas, which is also co-founder and one of the larger shareholders in Swedish battery maker Northvolt. H2 Green Steel is headquartered in Stockholm, Sweden, with its first green steel plant under development in Boden, northern Sweden. Further information on h2greensteel.com

About Kirchhoff Automotive

Kirchhoff Automotive offers body solutions that make tomorrow’s mobility safe. Innovative and economical lightweight products ensure that people are optimally protected in the event of an accident. As a supplier to the automotive industry, Kirchhoff Automotive develops and produces complex metal and hybrid structures for body-in-white and chassis that are lightweight, economical and crash-proof. After all, the vehicles of the future – from electric to autonomous – also require bodies that ensure the greatest possible safety for all those involved in an accident in the event of an emergency. The family-owned company, which has been in existence since 1785, is part of today’s Kirchhoff Group, which is made up of the Automotive, Ecotec, Mobility and WITTE Tools business units. With 8,000 employees and 27 production plants in 11 countries, Kirchhoff Automotive represents the largest division in the group. Further information on Kirchhoff-automotive.com

(Source: Kirchhoff/2024)
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