STOCKHOLM, May 28 -- Car-makers Volvo and Mercedes-Benz have announced that they will soon start using green steel, made with zero CO2 emissions, in the production of their future models. This will contribute to a considerable reduction in their carbon footprint.

The German car-maker Mercedes-Benz has taken an equity stake in Swedish start-up H2 Green Steel (H2GS) as a means of introducing CO2-free steel to the production of upcoming series models, starting in 2025. Currently, a sedan that rolls off Mercedes-Benz production lines is made with around 50 per cent steel.

H2GS uses hydrogen and electricity from 100 per cent renewable energy sources in its steel production process, which in turn makes it carbon-neutral. The company hopes to ...