: Volkswagen AG and Vulcan Green Steel have signed a Memorandum of Understanding (MoU) for a partnership over low-carbon steel procurement. The partnership is one of the series of initiatives by the Volkswagen Group to expand the use of green steel in production.
Starting in 2027, Vulcan Green Steel will produce automotive grades and other types of high-strength steel in Oman and supply it to Volkswagen. 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 facility is currently in the construction phase and is slated to come on stream in 2026.
The volumes of low-carbon steel that Volkswagen AG expects to order will cover around 300,000 tonnes of annual steel requirements and will be used by the group’s production facilities from 2027 onwards.
High wind speeds and strong, continuous solar radiation in Oman create ideal conditions for generating green power from wind and solar energy – an essential basis for the production of low-carbon steel using green hydrogen.
“Decarbonizing supply chains is a decisive factor for the Volkswagen Group on the road to carbon neutrality. We want to achieve this goal by 2050 at the latest, and using low-carbon steel is an important step in this direction. Green steel will help us make supply chains at Volkswagen even more environmentally friendly going forward,” said Dirk Große-Loheide, Member of the Board of Management of the Volkswagen Brand responsible for Procurement and Member of Volkswagen AG’s Extended Executive Committee.
