The “near zero-emission” material will be provided by an industrial start-up from Sweden.

Porsche has announced that as a component of its overall effort to reduce its vehicle manufacturing emissions, it has signed a new deal with H2 Green Steel (H2GS) to supply carbon dioxide-reduced steel for the luxury automaker’s sportscars.

The Swedish industrial start-up will start providing this near zero CO2 emission material as of 2026.

The intention Porsche has for its sportscar manufacturing is to use the “near zero-emission” green steel produced using renewable electricity at the Boden, Sweden H2GS plant. The plant is slated to begin the generation of clean electricity by the close of 2025. According to H2GS, its product will have one of the lowest carbon footprints available.

The production process used by H2GS is powered by hydrogen and electricity generated using renewable energy. This allows their product to be virtually CO2 emission free. The company’s information states that its product results in 95 percent less CO2 emissions than conventionally produced steel using coking coal.

Porsche will be using this green steel to start for the manufacturing of its sportscars.

“Porsche is working towards a carbon-neutral balance sheet across the value chain for its cars by 2030,” said Porsche executive board member for procurement Barbara Frenkel. “CO2-reduced steel plays a key role in our sustainability strategy. With the steel from H2GS, we aim to further reduce the CO2 emissions caused by this important material.”

Porsche vehicle series production will use as much as 35,000 tons of the low-emission material produced in Sweden. Though the automaker is focusing on using more lightweight aluminum in more of its vehicles, steel remains one of the core materials in sportscar construction because of its mechanical properties.

CO2 emissions throughout the supply chain

A considerable share of the CO2 emissions throughout the supply chain are from processes, energy and materials. This is among the factors that drove Porsche to boost its use of clean electricity and recycled materials throughout its production processes of direct suppliers. Naturally, it was also a main driver behind the choice to use green steel produced using hydrogen and renewable energy.