MP’s Warn that UK Government Lacks Green Steel Ambition

British Parliament’s Environmental Audit Committee has warned that steel production in UK, which currently accounts for 14% of Britain's industrial emissions, could be jeopardised as British Governments initiatives to decarbonisation the industry lacks ambition compared to other countries. The Environmental Audit Committee has been examining the readiness of green steel technologies and the necessary policy environment required for their deployment in industry, as part of the Committee's inquiry into Technological Innovations and Climate Change. Environmental Audit Committee Chairman MP Mr Philip Dunne in a letter titled Technological Innovations and Climate Change inquiry: Green Steel wrote to UK’s Secretary of State for Business, Energy & Industrial Strategy Department for Business, Energy & Industrial Strategy MP Mr Kwasi Kwarteng MP Technological Innovations and Climate Change inquiry: Green Steel “The wide range of evidence provided to us suggests that decarbonisation presents an opportunity for the UK steel industry to compete in the global market. This opportunity depends on the creation of the right policy framework and Government support. I am now writing to indicate a number of issues raised in the evidence that we have received, on which the Committee seeks clarification as to the Government's approach.”The Committee recently published its report Building to Net Zero: Costing Carbon in construction, which recommend the introduction of mandatory whole-life carbon assessments for buildings as the most effective way to encourage the development and use of low-carbon and recycled products in the built environment.33 Witnesses have highlighted to us that mandating the requirement for green steel in public infrastructure will help to stimulate market demand for green steel and instil confidence in the industry to invest in green steel technologies.A. The contribution of a decarbonised steel industry to net zero targetsB. Examination of the available technologies1. Hydrogen-based production i.e. hydrogen-Direct reduced iron or direct injection of hydrogen into existing blast furnaces2. Greater reliance on the recycling of scrap steel with electric-arc furnace technology or secondary production3. Carbon capture and storage4. Partial substitution of coking coal with biomass feedstocks.C. Government's policy on promoting the use of green steel in public procurement. Please also indicate whether the Government plans to use existing bodies, such as the UK Steel Council, to promote its policies on the decarbonisation of steel production, or whether it plans to establish a new bodyD. UK steel industry is expected to benefit from Government funds such as the Industrial Energy Transformation Fund38, the Net Zero Hydrogen Fund39 and the Carbon Capture, Usage and Storage Infrastructure Fund. What proportion of each of the the funds established to support industrial transition will be made available for direct support to the steel industry for its operational and capital costs during the transitionE. Government's rationale for the decision to withhold the Clean Steel Fund until 2023, when industry players are prepared to set out their decarbonisation plans now, and what plans the Government has to review the ambition of the Clean Steel Fund.

MP’s Warn that UK Government Lacks Green Steel Ambition

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