Steel production
It takes a lot of energy to produce steel in a blast furnace.
(Photo: dpa)
The Herzogenaurach-based automotive and industrial supplier Schaeffler is massively increasing its investments in the green steel start-up H2 Green Steel. Schaeffler gave a further 65 million euros in the latest financing round, the company announced on Monday. The investment is now at 100 million euros. For Schaeffler, this is the largest equity investment to date in a minority stake in another company, it said.
Schaeffler supports H2 Green Steel as a technology partner in the development of steel that can be used for car parts, for example. In total, H2 Green Steel raised around 1.5 billion euros in the financing round.
The people of Herzogenaurach have already agreed to buy CO2-reduced steel from the Swedish company in 2021; A year later, the first equity investment took place in a financing round. H2 Green Steel wants to build a steelworks that runs on hydrogen in the northern Swedish city of Boden.
Schaeffler increases investment in green steel start-up H2 Green Steel
The aim is to emit 95 percent less CO2 than conventional steelworks. The plant is scheduled to go into operation at the end of 2025. From 2026, production is expected to increase to five million tons of steel annually. Purchase contracts have already been agreed with car manufacturers and other customers for half of this quantity.
As a strategic technology partner of H2 Green Steel, Schaeffler also wants to contribute its know-how in the development of new steel grades and, together with H2 Green Steel, create new applications in the use of sustainable rolling bearing solutions in production.
More: Schaeffler continues to benefit from good spare parts business – industrial division is weakening
First publication: September 11, 2023, 11:16 a.m.