Germany-based automaker
Mercedes-Benz AG says it has signed an agreement with Steel Dynamics Inc.
(SDI), Fort Wayne, Indiana, to source more than 50,000 metric tons of what it
calls CO₂-reduced steel annually for its plant in Tuscaloosa, Alabama.
Without identifying which
facility, Mercedes says SDI will supply steel “made using an electric arc
furnace (EAF), and will use electricity from 100 percent renewable sources.”
Continues the automaker,
“With EAFs powered by green electricity, emissions can be reduced more than
half to 1.0-ton [of] CO₂ per ton of steel on average, compared to primary steel
production which uses blast furnaces and basic oxygen furnaces.”
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Mercedes, which indicates
it has had a business relationship with SDI since 2015, says the move marks
“another crucial milestone toward decarbonizing” its global steel supply chain.
The auto producer says
SDI flat-rolled steel made of 70 percent or more scrap content is being used in
all Mercedes-Benz models assembled at its Tuscaloosa plant, including two sport
utility vehicle (SUV) models.
Adds Mercedes, “Both
parties agreed to potentially increase the share of scrap in the near future,
which would reduce the carbon footprint even further.” The CO₂-reduced steel
from SDI specified in the new agreement is being introduced into series
production at the Tuscaloosa plant as early as September of this year, says the
automaker.
“Our ambition is clear:
Together with our partners we want to make our entire fleet of new vehicles net
carbon-neutral along the entire value chain by 2039,” says Dr. Gunnar Güthenke,
a head of procurement with Mercedes-Benz.
“Following this strategy.
our agreement with SDI to procure more than 50,000 metric tons CO2-reduced steel annually is another important
milestone to establish a sustainable steel supply chain in North America.”
Mercedes-Benz says it
also is a member of the Responsible Steel Initiative and has as its aim “to
ensure environmentally compatible and socially acceptable steel production
along the entire value chain.”