Volkswagen and Vulcan Green Steel sign MoU to produce low-carbon steel
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Volkswagen AG and Vulcan Green Steel have signed a Memorandum of Understanding (MoU) to establish a partnership focused on low-carbon steel.
VW plans to procure significant volumes of this steel, which will cover a substantial portion of its total steel needs. Starting in 2027, this steel will be utilized across VW Group production facilities.
Beginning in 2027, Vulcan Green Steel will manufacture automotive grades and other high-strength steel in Oman.
Also read: ThyssenKrupp Steel to present green steel plant proposals in August
Initially powered by natural gas at its Duqm operations, the facility will transition to green energy, ultimately reducing carbon emissions by 70%. Currently under construction, the plant is scheduled to commence operations in 2026.
Many automobile companies have recently stepped into the sustainable space. Earlier this month, Honda and Mitsubishi Corporation revealed their intention to establish a new joint venture company on a 50/50 basis starting in July 2024.
This initiative builds upon a MoU signed by the two companies in October 2023. The joint venture aims to capitalize on the anticipated growth in the electric vehicle (EV) market, aligning with the global shift towards a decarbonized future society.
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