During a recent equity funding round, Schaeffler agreed to invest an additional 65 million euros in Swedish startup H2 Green Steel, boosting its total stake to 100 million euros. Schaeffler says this move represents the most equity it has ever put into a minority stake in another company.
As a strategic technology partner of H2 Green Steel, Schaeffler says it 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 goal is to maximize the efficiency of production through the use of first-rate components and integrated condition monitoring solutions, according to Schaeffler. The two companies will also benefit from each other’s expertise in the areas of digitalization and circular economy.
“Achieving sustainability across the entire value chain requires cooperation between strong partners who are willing to move forward together with commitment and determination,” Klaus Rosenfeld, chief executive officer of Schaeffler AG, said. “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 says it 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 targets, Schaeffler says it is focusing systematically on decarbonizing the materials it uses most – including, most notably, steel. Every working day, the company says it 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 CO2emissions (Scope 3 upstream) than conventional steel produced via the blast furnace route, Schaeffler says.
