With new technologies to decarbonise steelmaking, the
Environmental Audit Committee (EAC) has said that domestic UK
steel production will be at risk unless the Government develops
its strategy to encourage more research and development in
emerging decarbonised technologies. These could facilitate the
end for coking coal in UK steelmaking in coming decades.
The EAC has held a short inquiry considering the decarbonisation
of the UK steel industry, which currently amounts to 14% of the
UK’s industrial emissions. Members took written and oral evidence
from the sector about the opportunities associated with new
technologies, and the challenges that lay ahead for them.
EAC members heard that Direct Reduced Iron (DRI) and Electric Arc
Furnace (EAF) methods could allow the sector to move away from
the use of coking coal for steelmaking, supporting the sector to
decarbonise well before 2050. For example, in efforts to reduce
dramatically their emissions, British Steel set out its plans to
convert an existing blast furnace to an electric arc furnace by
2035.
The Committee heard that Government initiatives to
decarbonisation steel production lacked ambition compared with
other countries. Steel sector representatives expressed concern
that unless the Government was forthcoming with a clear strategy
supported by funding to drive progress in clean steel
technologies, the UK might have to rely more heavily on steel
imports in the future. Members heard that the industry urgently
needs clarity on future Government support for its energy costs
in order to start committing to power-intensive green steel
technologies and to have the hope of remaining competitive in the
global market.
The Government has supported creating a demand for UK made steel,
but, as the Committee warns BEIS Secretary of State in a letter published today,
its ambitions may not come to fruition if there continues to be
uncertainty around the pathway to decarbonising the UK steel
industry.
Chair's comment
Environmental Audit Committee Chairman, Rt Hon MP, said:
“From cars to building frames, ships to wind turbines, we rely
heavily on steel. But steel production is highly energy-intensive
and a significant emitter. As technologies advance in other
countries, a way must be found to decarbonise the sector for Net
Zero Britain.
“Our Committee heard that the steel sector has the opportunity to
move away from a heavy emitter towards championing clean tech as
it adjusts towards eventually becoming a low carbon industry.
This is exactly the transition we must be focussing on as the net
zero deadline of 2050 approaches. To make this a reality, the
Government must set clear demand signals and invest properly in
research and development so that industry can adopt alternative
methods to manufacturing steel that is not such a carbon
intensive process.
“Coking coal, essential in current steel-making, may become a
thing of the past. We heard evidence that there will be limited
domestic demand from any new coking coal mine.”
