Changing Gears: Porsche’s Transition to CO2-Reduced Steel

Driven by the rising demand for electric vehicles (EVs) and sustainable solutions, the automobile industry is pivoting sharply towards eco-friendly practices. As the shift from traditional fossil-fueled vehicles accelerates, the sector is increasingly emphasizing the need for supportive infrastructure, sustainable materials, and green manufacturing.

Changing Gears: Porsche’s Transition to CO2-Reduced Steel

Image Credit: Porsche AG

This transformation is essential to reduce the significant greenhouse gas emissions from automobiles. For context, the average passenger car emits around 4.6 metric tons of carbon dioxide each year.

Highlighting the industry’s proactive steps, Porsche has recently announced its decision to switch to low-emission steel for its vehicles starting in 2026. This steel, characterized by one of the smallest carbon footprints available, not only underscores Porsche’s commitment to minimizing its environmental impact but could also set a precedent for other manufacturers to follow suit.

Porsche and H2 Green Steel - A Future-Focused Collaboration

H2 Green Steel, a Swedish energy start-up, has embarked on an ambitious journey to produce steel harnessing renewable energy. With production set to commence by the end of 2025, this innovative venture has caught the attention of automobile giant Porsche. The car manufacturer plans to integrate this nearly carbon-neutral steel into its production line, underscoring its commitment to shrinking its carbon footprint.

The brilliance of H2 Green Steel’s approach lies in its revolutionary manufacturing method. Instead of the traditional reliance on coking coal, the company leverages hydrogen and electricity, both sourced from sustainable avenues. The end product? Steel that is remarkably close to being carbon-neutral.

The statistics are equally compelling. According to H2 Green Steel, this manufacturing process will reduce the carbon dioxide emissions of the steel production process by 95% compared to conventional steel production methods.

Approximately 35,000 tons of low-emission steel will be produced annually in Sweden, designated for Porsche’s vehicle production. This represents a significant decrease when compared to previous consumption levels. For instance, in 2022, Porsche used a whopping 220,000 tons of steel for its vehicles.

The Revolution of Steel Production

The carbon footprint of current steel production methods is significant. It is a major contributor to global greenhouse gas emissions. Each of the many stages of the process contributes to its carbon footprint, from raw material extraction and iron ore processing to casting and rolling and transportation of the product.

It is estimated that for every ton of steel produced, an average of 1.85 tons of carbon dioxide is released into the atmosphere, accounting for around 8% of global carbon dioxide emissions.

The development of low-carbon steel is thus a key strategy in reducing the carbon footprint of the steel industries and of all industries that rely on steel. The low-carbon steel from H2 Green Steel will allow companies to continue to access the benefits of working with steel while reducing their carbon footprint.

Porsches Broader Sustainability Vision

As well as planning to incorporate H2 Green Steel’s low-carbon steel into its vehicles from 2026, Porsche is also using other strategies to improve its sustainability.

Porsche has been increasingly using aluminum for lightweight construction of their vehicles. Reducing the overall weight of a vehicle can have a positive impact on its environmental footprint in a number of ways.

First, it leads to improved fuel efficiency, as a lighter car requires less fuel to accelerate, decelerate, and maintain speed. This leads to reduced emissions from the reduction in fuel used and also the reduced stress placed on the engine, as it does not have to work as hard to propel the vehicle. Additionally, lighter cars mean less wear and tear on brakes and tires, which means they last longer, reducing the impact that disposal of these items has on the environment.


Porsche’s transition to low-carbon steel is not only a pivotal move in reducing its own carbon footprint but also sets a benchmark for other automobile manufacturers. This shift, spotlighting the viability and advantages of sustainable materials, suggests a promising direction for the broader industry.

As consumers grow increasingly eco-aware, the sustainable practices employed in vehicle manufacturing will weigh more heavily on their purchasing decisions. Thus, car manufacturers aiming to stay relevant will need to embrace such eco-friendly innovations.

In the future, the automobile industry’s push towards sustainability will likely see the rise of multiple strategies, with the adoption of materials like low-carbon steel leading the charge.

References and Further Reading

  1. (2023) Greenhouse gas emissions from a typical passenger vehicle. Available at: (Accessed: 02 November 2023).
  2. Porsche plans to use co₂-reduced steel in its sports cars from 2026 (no date) Porsche Newsroom. Available at: (Accessed: 02 November 2023).
  3. (No date) H2 Green Steel. Available at: (Accessed: 02 November 2023).
  4. Hoffmann, C., Hoey, M.V. and Zeumer, B. (2020) Decarbonization Challenge for Steel, McKinsey & Company. Available at: (Accessed: 02 November 2023).

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Sarah Moore

Written by

Sarah Moore

After studying Psychology and then Neuroscience, Sarah quickly found her enjoyment for researching and writing research papers; turning to a passion to connect ideas with people through writing.


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