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. The agreement aims to accelerate global ferrous supply chain decarbonization.
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.
“Today’s announcement marks another strategic milestone in advancing our sustainability goals. Our customers are already signaling significant interest in CO2 steel. H2 Green Steel is one of the first out of the starting blocks as H2 Green Steel in producing green steel at scale,” says Lee Kirk, managing director, Cargill Metals
Cargill Metals connects different parts of the ferrous supply chain, from iron ore mining 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.
“It is the commitment to a responsible and sustainable connected ferrous metals supply chain that drew us to this partnership with Cargill. The additional possibilities for working together for both upstream and downstream emission reductions that enhance this distribution relationship. Cargill’s global reach will help H2 Green Steel’s products be available to other markets as demand grows beyond the EU,” says Mark Bula, Commercial Head of Boden Steel at H2 Green Steel.
Karin Hallstan, Head of Public and Media Relations, phone: +46 76 842 81 04, email: press@h2greensteel.com
About H2 Green Steel
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. H2 Green Steel is headquartered in Stockholm, Sweden, with its first green steel plant under development in Boden, northern Sweden. www.h2greensteel.com
About Cargill
Cargill helps the world’s food system work for you. We connect farmers with markets, customers with ingredients and families with daily essentials—from the foods they eat to the floors they walk on. Our 160,000 team members around the world innovate with purpose, empowering our partners and communities as we work to nourish the world in a safe, responsible, sustainable way.
From feed that reduces methane emissions to waste-based renewable fuels, the possibilities are boundless. But our values remain the same. We put people first. We reach higher. We do the right thing. It’s how we’ve met the needs of the people we call neighbors and the planet we call home for 157 years—and how we’ll do so for generations to come. For more information, visit Cargill.com and our News Center.
About Cargill Metals
Headquartered in Singapore, Cargill’s metals business provides value-add services and solutions along the global ferrous supply chain. Our 150-year track record of risk management in global commodities markets combined with more than 40 years of unique insights in the ferrous industry, provides our customers the support they need to thrive. We connect iron ore miners around the world with steel mills in key markets and provide a broad range of services from technical marketing to customized risk management solutions along the supply chain including to end users of steel.
With around 150 dedicated experts, an established global network and hubs in China, Singapore, U.K. and Vietnam to serve our customers, 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. Each year we move around 50 million tons of physical iron ore and 6 million tons of physical steel globally. For more information, visit Cargill Metals Supply Chain or Cargill.com.
