Cargill and H2 Green Steel sign multi-year offtake contract to supply near zero-emission steel
Cargill (Cargill Metals) has entered into a multi-year agreement with Swedish industrial startup H2 Green Steel for the supply of green steel, according to the company's release.
Cargill joins a growing list of customers of H2 Green Steel, further validating the demand for near-zero emission steel. The agreement marks another major step for Cargill toward its vision to shape a responsible and sustainable ferrous supply chain that helps the world thrive.
Cargill Metals connects different parts of the ferrous supply chain, from iron ore miners to steel mills around the world. The company is committed to delivering on its sustainability goals through a variety of initiatives, including partnerships that develop cleaner products with lower CO2-footprint. The agreement with H2 Green Steel is an example of such a partnership where Cargill will help its customers meet their sustainability and climate goals with a sustainable and responsible supply of products.
H2 Green Steel was launched in 2021 to accelerate the decarbonization of hard to abate industries. Starting with steel - one of the heaviest polluting industries - the company is building a green field steel plant in Boden which will run on renewable electricity. The plant will produce its own green hydrogen in a giga-scale electrolyzer, which in turn will reduce iron ore to green sponge iron through direct reduction. The green sponge iron will feed the green steel process achieving emission reductions of up to 95 percent compared to traditional steelmaking with coke and coal in a blast furnace.
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.
Headquartered in Singapore, Cargill’s metals business provides value-add services and solutions along the global ferrous supply chain.
Cargill operates across over 25 ports and more than 50 warehouses globally, providing physical and financial solutions to over 2,500 customers in 40 countries.
