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. The German company develops and manufactures lightweight body and chassis components for many of the world's leading car manufacturers. This agreement will help GEDIA to decarbonize its value chain and thus support its customers in their efforts to produce cars and trucks more sustainably.
Initially, Tata Steel intends to supply GEDIA with Zeremis® Carbon Lite - a steel that enables a reduction in carbon footprint of up to 90%1). The plan is to switch supply to Zeremis® Embodied Green Steel when the IJmuiden steel plant launches its new steelmaking route. To further decarbonize GEDIA's value chain in the short term, the companies have also agreed to explore ways to reduce emissions associated with steel transport.
"This Memorandum of Understanding is characterized by its long-term nature and scope. As such, it reflects GEDIA's strong commitment to promoting sustainability in the automotive sector and expresses confidence in Tata Steel's Green Steel Plan," said Heather Wijdekop, Commercial Director of Tata Steel IJmuiden. "The need is obvious, but we cannot decarbonize the industry and value chains overnight. Zeremi's Carbon Lite therefore offers a bridging solution until embodied green steel becomes available. We share GEDIA's ambitions and are excited to contribute to their goals, taking our almost 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 GEDIA Automotive Group, added: "GEDIA joined the initiative of various car manufacturers years ago. We are committed to the Paris Climate Agreement and are aiming for CO2 neutrality by 2032. To achieve this, a company like ours not only needs 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 many years of trusting cooperation and also marks the start of a significant new path towards climate neutrality."
On the way to becoming a leading producer of green, clean and circular steel
As one of Europe's leading steel producers, Tata Steel Nederland aims to become a leading producer of green, clean and circular steel in the coming years. The company has set itself ambitious targets, including a 40% reduction in CO2 emissions by 2030, coinciding with the commissioning of the first DRP and EAF plants, and complete carbon neutrality by 2045. Tata Steel also aims to increase the share of scrap in its total annual production to around 30% by 2030.
In line with its sustainability goals, the company has recently expanded its offering with the launch of Zeremis® Delivered. This service offers customers the opportunity to receive their steel orders via lower-emission transportation methods, reducing their Scope 3 emissions2) 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 longer range solutions and other modes of transportation.
1) This is the maximum reduction for the sum of emissions from scopes 1, 2 and 3. For the sum of emissions from scopes 1 and 2, this corresponds to a 100% reduction.
2) Greenhouse gas emissions are divided into three groups or "scopes" in the GHG Protocol. Scope 1 comprises direct emissions from own or controlled sources. Scope 2 includes indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions generated in a company's value chain.