Volkswagen AG and Vulcan Green Steel (VGS) have signed a Memorandum of Understanding (MoU) for a partnership for low-carbon steel—a key element of Volkswagen’s green steel strategy.
The volumes of low-carbon steel that Volkswagen AG expects to order will cover a significant proportion of total steel requirements and will be used by the Group’s production facilities from 2027 onwards.
The partnership is one of a series of initiatives by the Volkswagen Group to expand the use of green steel in production. In addition to the collaboration with Vulcan Green Steel, Volkswagen has been in partnership with Salzgitter AG since 2022. The Group also has a stake in Swedish green steel manufacturer H2 Green Steel via its subsidiary Scania.
The Jindal Steel Group, to which Vulcan Green Steel belongs, is a diversified industrial conglomerate with steel, iron ore mining and energy operations as well as activities in India, Oman, Africa and Australia.
Starting in 2027, Vulcan Green Steel will produce automotive grades and other high-strength steels in Duqm, Oman. Natural gas will be used in the Duqm operations during the initial years and later the operations will be switched over to green energy in a move that will cut carbon emissions by 70% once the transition is complete.
The greenfield steel complex in Duqm will have an initial capacity of 5 million metric tons of decarbonized steel per annum (MTPA), running the production with 100% renewable energy, benefitting from Oman’s world-leading solar profile with 3,493 hours of sunshine every year and a superb wind potential with a wind energy density of 248 W/m², on a par with that of the world’s best location for wind power, the Netherlands.
The facility is currently in the construction phase and is slated to come on stream in 2026.
Source from Green Car Congress
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