Cargill, H2 Green Steel sign offtake contract

Singapore-based Cargill Metals has entered into a multiyear agreement with Sweden-based industrial startup H2 Green Steel for the supply of green steel. The companies say the agreement aims to accelerate global ferrous supply chain decarbonization.

According to Cargill, the agreement marks another major step for the company toward its vision to shape a responsible and sustainable ferrous supply chain that helps the world thrive.

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“Today’s announcement marks another strategic milestone in advancing our sustainability goals,” Cargill Metals Managing Director Lee Kirk says. “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 is producing green steel at scale.”

Cargill Metals says it connects different parts of the ferrous supply chain, from iron ore to mining to steel mills around the world. The company says it is committed to delivering on its sustainability goals through a variety of initiatives, including partnerships that develop cleaner products with a lower CO₂ footprint and adds the agreement with H2 Green Steel (H2GS) is an example of such a partnership where Cargill will help its customers meet sustainability and climate goals with a sustainable and responsible supply of products.

H2GS was launched in 2021 to accelerate the decarbonization of hard-to-abate industries. Starting with steel, the company says it is building a green field steel plant in Boden, Sweden, which will run on renewable electricity and 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 company says 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,” says Mark Bula, commercial head of Boden Steel at H2GS. “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.”