Volkswagen partnered with Vulcan Green Steel, a subsidiary of the Jindal Steel Group, through an agreement. The collaboration is part of the group’s broader initiative to increase the use of low carbon steel in its manufacturing processes.
Vulcan Green Steel aims to commence production of automotive-grade and high-strength steels in Oman by 2027. Initially, the operations at the Duqm facility will be powered by natural gas, with plans to transition to renewable energy sources thereafter. The shift is expected to reduce carbon emissions by seventy percent. The facility, currently in development, is scheduled to become operational in 2026.
Dirk Grohe-Loheide, a member of the board of management of the Volkswagen brand responsible for procurement and a member of Volkswagen AG’s extended executive committee, emphasized that decarbonizing supply chains is critical for VW Group’s journey towards carbon neutrality by 2050. As per the agreement, Volkswagen aims to source up to 3,00,000 tons of Europe’s annual steel requirements from Vulcan Green Steel.
As reported by ManufacturingToday, the integrated approach of Vulcan Green Steel in Oman spans from iron ore mining to the production of green energy and hydrogen on-site, ensuring a fully vertically integrated process for flat steel production, including secondary metallurgy.
