British Steel will stage consultation events to showcase its £1.25billion proposals to transform its operations.
Earlier this month, the steel manufacturer unveiled ambitious plans for the biggest transformation in its history with a proposal to adopt electric arc furnace steelmaking.
The plans, subject to appropriate support from the UK Government, could see British Steel install two electric arc furnaces one each at its HQ in Scunthorpe, the second at its
manufacturing site in Teesside.
The new furnaces could be operational by late 2025 and would replace the existing iron and steelmaking operations in Scunthorpe which are responsible for the vast majority of the company’s CO2 emissions.
In December, it will stage four events – two each in Scunthorpe and Teesside – to share information about its plans.
British Steel CEO and President Xijun Can said: “We have already engaged extensively with the public and private sectors to understand the feasibility of producing net zero steel with our current blast furnace operations. Thorough analysis shows this is not viable, which is why we are proposing to transform our operations so we can make the net zero steel the UK will need for decades to come.
“We’d now like to consult with the people living in our communities about our proposals to adopt a clean and sustainable way of making steel.
“At the events, people will have the chance to see our plans in greater detail and ask questions about the planning implications for our proposals. Feedback from the events will be used to shape any future planning applications we may make.”
The Scunthorpe events are on Friday 8 December, between 11am and 3pm, at the 20-21 Visual Arts Centre in Church Square, Scunthorpe.
British Steel unveiled its Low-Carbon Roadmap in October 2021, pledging to invest in a range of technologies to deliver net-zero steel by 2050, and significantly reduce its CO2 intensity by 2030 and 2035. However, the company is now proposing to accelerate its decarbonisation journey with the potential new operating structure able to reduce its CO2 intensity by more than 75 per cent.
Xijun said: “Our desire to dramatically reduce our carbon footprint, coupled with current market conditions, means we can’t wait and need to transform our business as quickly as possible. And while decarbonisation will not happen overnight, it’s imperative we take swift and decisive action to ensure a sustainable future for British Steel.
“We studied having one large electric arc furnace based in Scunthorpe, one which was capable of manufacturing all of the steel we require for our rolling mills in the Humber and the North East. However, such a large furnace would require a new National Grid connection and it is anticipated this would not be available until 2034. We therefore believe the most viable and timely option is to have two smaller furnaces which combine to produce the volumes of steel we require.”
British Steel has started preliminary talks with trade unions about electrification, and has promised to support employees affected by the decarbonisation plans. It has agreed for its proposals to be reviewed by an external specialist on behalf of the trade unions.
The company is also working with North Lincolnshire Council on a masterplan to attract new businesses and jobs to the Scunthorpe site, parts of which could become vacant if the proposals go ahead.
