GEDIA and Tata Steel sign MOU for strategic supply of Zeremis green steel
The GEDIA Automotive Group has signed a memorandum of understanding (MOU) with Tata Steel Nederland for the long-term supply of a significant amount of steel with a lower environmental footprint. This agreement will help GEDIA to decarbonize our value chain and thus support our customers in their efforts to achieve more sustainable production of cars and trucks.
Initially, Tata Steel intends to supply GEDIA with Zeremis® Carbon Lite – a steel that enables a reduction of the carbon footprint by up to 90%1). The plan is to switch the supply to Zeremis® Embodied Green Steel when the IJmuiden steel plant introduces its new steel production route. To further decarbonize GEDIA's value chain in the short term, the companies have also agreed to explore options for reducing the emissions associated with steel transportation.
“This MoU is distinguished by its long-term nature and scope. It reflects GEDIA's strong commitment to promoting sustainability in the automotive sector and expresses confidence in the Green Steel Plan of Tata Steel,” said Heather Wijdekop, Commercial Director of Tata Steel IJmuiden. ”The need is obvious, but we cannot decarbonize industry and value chains overnight. Zeremis® Carbon Lite therefore offers a bridging solution until embodied green steel becomes available. We share GEDIA's ambitions and are pleased to contribute to their goals, taking our nearly 15-year partnership to a new level. By working together with our value chain, we can accelerate the transition to green steel.”
Klaus Bierwirth, Chief Commercial Officer and Member of the Executive Board of the GEDIA Automotive Group, added: “GEDIA joined the initiative of various automotive manufacturers years ago. We are committed to the Paris Agreement and are aiming for CO2 neutrality by 2032. To achieve this, a company like ours needs not only the necessary technologies, but also a promising partner at its side. We have found this in Tata Steel. The signing of the memorandum of understanding is testament to a long-standing, trusting relationship and at the same time marks the beginning of an important new path towards climate neutrality.”
On the way to becoming a leading manufacturer of green, clean and circular steel
As one of Europe's leading steelmakers, Tata Steel Nederland aims to become a leading producer of green, clean and circular steel in the coming years. The company has set ambitious targets, including a 40% reduction in CO2 emissions by 2030, to coincide with the commissioning of the first DRP and EAF plants, and complete carbon neutrality by 2045. In addition, Tata Steel aims to increase the share of scrap in total annual production to around 30% by 2030.
In line with its sustainability goals, the company recently expanded its offering with the introduction of Zeremis® Delivered. This service offers customers the option of receiving their steel orders via lower-emission transportation methods, enabling them to reduce their Scope 32) emissions and other emissions associated with steel transportation. Initially, Zeremis Delivered will be offered to customers within a 300-kilometer radius of Tata Steel's sites in the Netherlands and Belgium. The environmentally friendly delivery option will be further developed to include solutions with a longer range and other modes of transportation.
1) This is the maximum reduction for the sum of the emissions from areas 1, 2 and 3. For the sum of the emissions from areas 1 and 2, this corresponds to a 100% reduction.
2) The GHG Protocol categorizes greenhouse gas emissions into three groups or “scopes”. Scope 1 includes direct emissions from owned or controlled sources. Scope 2 includes indirect emissions associated with the generation of purchased electricity, steam, and heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions generated across a company's value chain.
