MUNICH, March 24 — Volkswagen has just announced a deal with the Salzgitter steel group to supply low-carbon steel from the end of 2025. What exactly is this so-called green steel?

Salzgitter plans to start producing low-carbon steel on a new Volkswagen production route from the end of 2025, resulting in almost 95 per cent fewer CO2 emissions than at present.

The group has already started producing green steel, on a small scale, on its scrap-based electric steel route. In order to significantly reduce CO2 emissions during steel production, fossil fuels — especially coal — need to be replaced by green hydrogen, which is produced from renewable energy sources.

Volkswagen plans to use this low-carbon, non-fossil-fuel steel in major projects such as its upcoming Trinity electric sedan. Last year, Volvo and Mercedes-Benz announced that they too would soon use green steel in the production of their future models.

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This type of initiative will help significantly reduce the carbon footprint of these manufacturers, for whom sustainable development and the circular economy are now two key concepts. — ETX Studio