Mercedes-Benz teams up with SSAB to explore fossil fuel-free steel for cars

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BENGALURU, Sept 1 (Reuters) - Swedish steelmaker SSAB (SSABa.ST) said on Wednesday it had partnered with Daimler's (DAIGn.DE) Mercedes-Benz to introduce fossil fuel-free steel into vehicle production, with prototype parts for body shells planned for next year.

SSAB plans to supply the market with fossil-free steel at a commercial scale in 2026, using the HYBRIT system to replace coking coal, traditionally needed for iron ore-based steelmaking, with electricity and hydrogen.

The Mercedes-Benz logo is seen on a car in front of the Mercedes-Benz Museum in Stuttgart, Germany February 11, 2020. REUTERS/Andreas Gebert/Files

Green steel venture HYBRIT (Hydrogen Breakthrough Ironmaking Technology) is created and owned by SSAB, Swedish state-owned utility Vattenfall (VATN.UL) and Swedish miner LKAB.

Mercedes-Benz expects that by 2039 its new passenger car fleet will become carbon dioxide-neutral along the entire value chain.

SSAB had in June partnered with Volvo Cars to jointly explore the development of fossil-free steel for use in the automotive industry.

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Reporting by Supantha Mukherjee, Editing by Louise Heavens

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