In an announcement Wednesday, H2 Green Steel said the new supply agreement will support the automaker’s European manufacturing. Additionally, it said, Mercedes-Benz has signed a memorandum of understanding with H2 Green Steel “to work together to enable a long-term supply of green steel produced in North America for Mercedes-Benz’s manufacturing plants in North and South America.”

Mercedes-Benz is an investor in H2 Green Steel.  

“We have talked to different stakeholders in both Canada and the U.S. for some time and the possibility to leverage a large supply of renewable electricity for the production of green hydrogen and green sponge iron that can feed a sustainable steel production is a very interesting prospect for H2 Green Steel as it continues to push the steel value chain to decarbonize globally,” said H2 Green Steel chief executive officer Henrik Henriksson.