Tata Steel and GEDIA sign MOU for strategic supply of Zeremis green steel
Tata Steel Nederland has signed a memorandum of understanding (MOU) with GEDIA Automotive Group for the long-term supply of a significant volume of steel with a lower environmental footprint. The German company develops and manufactures lightweight structural body parts and chassis components for many of the world’s leading automotive manufacturers. This agreement will help GEDIA decarbonise its value chain, thus supporting its customers’ in their efforts to produce cars and trucks more sustainably.
Initially, Tata Steel intends to provide GEDIA with Zeremis® Carbon Lite – steel with an allocated carbon footprint reduction of up to 90%1). It is envisaged that the supply will transition to Zeremis embodied green steel when the IJmuiden steelworks adopts its new steelmaking route. In addition, to further decarbonise GEDIA’s value chain in the shorter term, the companies also agreed to explore opportunities to reduce emissions associated with steel transportation.
“This MOU stands out for its long-term nature and size. With that, it reflects GEDIA’s strong commitment to drive sustainability in the automotive sector and expresses confidence in Tata Steel’s Green Steel plan,” said Heather Wijdekop, Commercial Director of Tata Steel IJmuiden. “While the need is evident, we cannot decarbonise industries 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, elevating our almost 15 years of partnership to new heights. By working together with our value chain, we can increase the speed of 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 aim for CO2 neutrality by 2032. To achieve this, a company like ours not only needs the necessary technologies but also a promising partner by its side. We have found this in Tata Steel. The signing of the MOU attests to many years of trusting cooperation and, at the same time, marks the beginning of a significant new path towards climate neutrality.”
Transforming to a leading producer of green, clean and circular steel
As one of Europe's foremost steel producers, Tata Steel Nederland aims to develop into 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, coinciding with the commissioning of its first DRP and EAF installations, and complete carbon neutrality by 2045. Tata Steel also intends to increase the use of scrap to approximately 30% of the total annual production by 2030.
In alignment with its sustainability objectives, the company recently expanded its offering with the introduction of Zeremis® Delivered. This service provides customers the option to receive their steel orders via lower emissions transportation methods, reducing their scope 3 emissions2) and other emissions associated with steel transportation. Initially, Zeremis Delivered will be available to customers within a 300-kilometer driving distance from Tata Steel’s sites in the Netherlands and Belgium. The eco-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 scope 1, 2 and 3 emissions. For the sum of scope 1 and 2 emissions, this represents a 100% reduction.
2) Greenhouse gas emissions are categorised into three groups or ‘Scopes’ by the GHG Protocol. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company’s value chain.