Business Green has reported that UK’s think tank Green Alliance argues that British Steel and Tata Steel should transition half of production to electric arc furnaces to receive public subsidy. Green Alliance has warned that the long-term competitiveness of the sector required a funding package that was designed to accelerate clean steel production and ensure the UK can become a producer of low-carbon steel for the industries of the future and a condition of the bailout should be that steelmakers commit to switching half their production from coal powered blast furnaces to electric arc furnaces Green Alliance Research Director Mr Roz Bulleid said “If the GBP 600 million is spent directly on lower carbon steelmaking equipment and comes with commitments from steelmakers to green the rest of their production, it looks like good value for the scale of carbon savings that could be achieved. However, ministers must attach strict green strings to any bail out to make sure taxpayers' money is well spent and genuinely used to future proof this critical sector.” The British Government has been urged to bake the net zero transition into its mooted GBP 600 million support package for the UK's steelmakers by ensuring that the award of any new funds is contingent on leading steel firms weaning at least half of their production off coal. British Steel and Tata Steel, the owners of the UK's two largest and most emissions intensive steelworks, are reportedly set to receive subsidies worth around GBP 300 million in a bid to help them stay afloat and protect jobs as the sector battles high energy prices, carbon prices, competition from cheaper imports, reduced demand, and inflationary pressures. The Treasury is yet to confirm the details of its mooted bailout. However, reports have indicated it intends to attach job retention and decarbonization targets to any rescue package. The two integrated steel sites in Scunthorpe and South Wales are responsible for 95% of the UK's iron and steel sector's emissions due to their reliance on blast iron furnaces, which transform coking coal into primary iron.
Business Green has reported that UK’s think tank Green Alliance argues that British Steel and Tata Steel should transition half of production to electric arc furnaces to receive public subsidy. Green Alliance has warned that the long-term competitiveness of the sector required a funding package that was designed to accelerate clean steel production and ensure the UK can become a producer of low-carbon steel for the industries of the future and a condition of the bailout should be that steelmakers commit to switching half their production from coal powered blast furnaces to electric arc furnaces Green Alliance Research Director Mr Roz Bulleid said “If the GBP 600 million is spent directly on lower carbon steelmaking equipment and comes with commitments from steelmakers to green the rest of their production, it looks like good value for the scale of carbon savings that could be achieved. However, ministers must attach strict green strings to any bail out to make sure taxpayers' money is well spent and genuinely used to future proof this critical sector.” The British Government has been urged to bake the net zero transition into its mooted GBP 600 million support package for the UK's steelmakers by ensuring that the award of any new funds is contingent on leading steel firms weaning at least half of their production off coal. British Steel and Tata Steel, the owners of the UK's two largest and most emissions intensive steelworks, are reportedly set to receive subsidies worth around GBP 300 million in a bid to help them stay afloat and protect jobs as the sector battles high energy prices, carbon prices, competition from cheaper imports, reduced demand, and inflationary pressures. The Treasury is yet to confirm the details of its mooted bailout. However, reports have indicated it intends to attach job retention and decarbonization targets to any rescue package. The two integrated steel sites in Scunthorpe and South Wales are responsible for 95% of the UK's iron and steel sector's emissions due to their reliance on blast iron furnaces, which transform coking coal into primary iron.
