As part of the agreement, H2 View understands the two companies have also agreed on technical cooperation which will include several measures that will address BMW’s Science Based Targets (SBT) and contribute to its ambitious carbon reduction timeline.

Committed to Scope 1, 2, and upstream Scope 3 GHG Protocol requirement, H2 Green Steel says it has an embodied carbon emission intensity obligation per tonne of steel, included in its customer contracts.

The final agreement comes less than a year after it was revealed that BMW would use the Swedish company’s hydrogen-produced steel.

Read more: BMW to source hydrogen-produced steel from H2 Green Steel

In an effort to further improve the lifecycle of steel, BMW and H2 Green Steel have agreed to have 40% of pre-consumer steel scrap returned to H2 Green Steel for recycling.

Henrik Henriksson, CEO of H2 Green Steel, said, “We are on a mission to decarbonise the steel industry. Working with progressive companies like BMW Group, pushes us to be better both in our own operations and our value chain. It also pushes us to be an even better partner to our customers and raises the bar for industry peers on the decarbonisation journey.”

H2 Green Steel is in the process of establishing its Boden, Sweden plant, which will feature giga-scale electrolysis capacity, powered by fossil-free electricity to be used to clean up steel production.

It is expected, its process could reduce carbon dioxide emissions by approximately 95% compared to traditional iron-making processes.

Read more: Green is the new black: An interview with H2 Green Steel

Earlier this year (2022), H2 Green Steel announced it had signed contracts for over 1.5 million tonnes of its hydrogen-produced hydrogen each year spanning more than five to seven years.

Read more: H2 Green Steel: Soaring demand for hydrogen produced green steel