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Volvo, Vattenfall, Iberdrola and Siemens Gamesa join SteelZero initiative

Current members to SteelZero include Multiplex, Maersk, Lendlease and Orsted

The Climate Group has today (31 May) confirmed that Iberdrola, Siemens Gamesa, Vattenfall BA Wind and Volvo Cars are the latest corporate signatories to SteelZero.

Convened by The Climate Group, which is perhaps best known for its RE100 and EV100 initiatives, SteelZero represents businesses from all parts of the steel value chain. By signing up to SteelZero, companies commit to procuring, specifying, stocking, or producing 100% net-zero steel across all operations by 2050 at the latest.

Iberdrola and Vattenfall BA Wind both operate in the renewables sector, namely with a focus on wind, while Siemens Gamesa builds, develops and supplies wind turbines. Volvo Cars is the first automotive manufacturer to join Steel Zero.

All four companies have set targets of using 50% low-carbon steel by 2030, which will build towards the overall aim of using net-zero steel by 2050.

The Climate Group’s head of industry Jen Carson said: “This group of businesses from two highly influential sectors committing to SteelZero, marks a significant step change in the demand signal for low emission and net-zero steel.

“Both renewable energy and automotive sectors play a key role in driving the net-zero transition. In doing so they’re supporting the creation of a decarbonised steel market that can enable each sector to meet their net-zero targets.”

Steel is a notoriously high-emission material and a hard-to-abate sector. More than 90% of metal produced in the world is steel, and the sector is accountable for around 7% of global emissions from fuel use. Researchers believe that a combination of electrification, energy storage, alternative fuels and circular economy innovations are needed to align the sector with net-zero. Carbon capture and offsetting are also being explored by some producers.

The Climate Group’s hope is that, by driving market demand for net-zero steel, strong signals will be sent to laggard companies. Policymakers and investors are also likely to take note, given the collective purchasing power and influence of the member companies. Given that steel demand is likely to grow by up to 40% by 2050, the hope is to decouple sector growth from emissions.

Current members to SteelZero include Multiplex, Maersk, Lendlease and Orsted.

© Faversham House Ltd 2022 edie news articles may be copied or forwarded for individual use only. No other reproduction or distribution is permitted without prior written consent.

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