OTS - BMW Group secures CO2-reduced steel for global production network
2022. November 16. 16:15
Munich, 16 November, 2022 (APA/OTS) - Lower CO2 emissions for over
one third of global steel purchasing - The BMW Group is
systematically pursuing its climate goals for the supplier network
and significantly reducing the carbon footprint of its steel
sourcing. Following initial contracts with European suppliers, the
BMW Group has now concluded further agreements for the supply of
CO2-reduced steel in the US and China.
"Steel is one of the main sources of CO2 emissions in our
supply chain. That is why we are comprehensively reorganising our
steel portfolio - so we can supply our global production network
with over one third of CO2-reduced steel from 2026. This will
reduce the carbon footprint of our supply chain by 900,000 tonnes
per year, while at the same time driving the transformation of the
steel industry," said Joachim Post, member of the Board of
Management of BMW AG responsible for Purchasing and Supplier
Network.
In the medium term, the BMW Group will increase CO2 savings
through agreements with additional steel suppliers and thus
consistently drive forward the decarbonization of its supplier
network. Around 20 percent of supply chain CO2 emissions for a
mid-sized fully-electric vehicle are attributable to steel - which
comes in third, after battery cells and aluminium. With its
versatile properties, steel is nevertheless one of the key
materials for automotive manufacturing and will be no less
important for future vehicle concepts and generations.
Focus on renewable energies in the US and Mexico
For the Americas region, agreements have already been reached
with domestic steel producers Steel Dynamics (SDI) and Big River
Steel, a U. S. Steel facility, to use renewable energy sources in
their local steel production.
In the US and Mexico, about half of the BMW Group's flat steel
requirements are supplied by the electric arc furnace (EAF)
steelmaking process, which relies on electrical energy to melt down
iron and steel scrap. This manufacturing process has significant
potential for CO2 savings, compared to coal-based steel production
in a blast furnace. The CO2-reduced steel is then used at BMW Group
Plants Spartanburg and San Luis Potosí to create car bodies for BMW
vehicles. Due to its material properties, steel from electric arc
furnaces is particularly suitable for use in structural components
such as the underbody.
Use of innovative technologies in China
In China, the BMW Group already signed an agreement in August
with steel manufacturer HBIS Group, which will supply the BMW Group
plants in Shenyang with CO2-reduced steel from 2023. The HBIS Group
is gradually transitioning to a hydrogen-based method in
combination with electric arc furnace steelmaking to enable further
CO2 savings from 2026. The BMW Group will be the first automotive
manufacturer in China to use CO2-reduced steel from the HBIS Group
in series production.
CO2-reduced steel in Europe
The BMW Group has signed an agreement with Salzgitter AG for
delivery of lower-CO2 steel. The plan is to use the steel in series
production of cars at the BMW Group's European plants from 2026
onwards. The BMW Group already signed an agreement with Swedish
startup H2 Green Steel in October of last year. The company will
supply the BMW Group's European plants with steel produced
exclusively using hydrogen and electricity from renewable energies.
- Picture is available at AP Images (http://www.apimages.com) -
BMW Group Corporate Communications
Benedikt Fischer,
Communications Purchasing, Supplier Network, Sustainability
Email: Benedikt.Fischer@bmwgroup.com, Tel: +49-89-382-66887
Sandra Schillmöller,
Communications Purchasing, Supplier Network, Sustainability
Email: Sandra.Schillmoeller@bmwgroup.com,Tel: +49-89-382-12225
Media website: www.press.bmwgroup.com
Email: presse@bmwgroup.com
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