Schaeffler and H2 Green Steel intensify
cooperation.
Schaeffler, the motion technology company, and Swedish startup
H2 Green Steel have decided to intensify their already close partnership. The
two companies made the decision in the course of a recent equity funding round,
in which Schaeffler agreed to invest a further 65 million euros, a significant
increase that takes its total stake to 100 million euros. That’s the most
equity Schaeffler has ever put into a minority stake in another company.
As a strategic technology partner of H2 Green Steel, Schaeffler
will channel its know-how into the development of new steel products, such as
green e-steel for electromobility. In addition, the two companies will jointly
develop new applications for the use of sustainable rolling bearing solutions
in production.
The aim is to maximize the efficiency of production through the
use of first-rate components and integrated condition monitoring solutions. The
two companies will also benefit from each other’s expertise in the areas of
digitalization and circular economy.
Klaus Rosenfeld, Chief Executive Officer of Schaeffler AG,
said:
Achieving sustainability across
the entire value chain requires cooperation between strong partners who are
willing to move forward together with commitment and determination.
“Schaeffler and H2 Green Steel are both pioneers with true
innovative power, and we are now synergizing these strengths even further. The
increased capital stake and the strategic technology partnership follow the
off-take agreement of 2021 as the next logical step as our two organizations
seek to work together even more closely. Together, we are making a significant
contribution to the global transformation of the steel industry and the
reduction of CO₂ emissions.”
Green steel: Key lever for decarbonization
Schaeffler is pursuing the overarching goal of being completely climate-neutral
by 2040. By 2030, the company aims to achieve both climate neutrality in its
own production processes (Scope 1 and 2) and a 25 percent reduction in its
supply chain emissions (Scope 3 upstream).
To achieve these ambitious targets, Schaeffler is focusing
systematically on decarbonizing the materials it uses most – including, most
notably, steel. Every working day, the company processes roughly an Eiffel
Tower’s worth of steel – somewhere in excess of 7,000 tons. The advantage of
the green steel purchased from H2 Green Steel is that it has up to 95 percent
less embodied CO₂ emissions (Scope 3 upstream) than conventional steel produced
via the blast furnace route.
Andreas Schick, Chief Operating Officer of Schaeffler
AG, explained:
For Schaeffler, steel is the
decisive lever for decarbonizing our supply chain.
“The partnership with H2 Green Steel takes us a long way towards
our target of climate neutrality. We are proud to be the world’s first tier 1
supplier to be working with H2 Green Steel as a strategic technology partner.
This is a sustainable, long-term investment in Schaeffler’s network for this
vitally important category of materials.”
Highlights:
- Increase in equity stake adds
third pillar to cooperative venture, alongside strategic technology
partnership and off-take agreement
- Schaeffler increases equity
interest in H2 Green Steel to 100 million euros
- Use of steel produced by H2
Green Steel reduces CO₂ emissions by up to 95 percent compared with
conventional steel
- Green steel: key lever for
supply chain decarbonization