British Steel was recently granted planning permission to build an Electric Arc Furnace at its Teesside plant – a key milestone in its £1.25-billion decarbonisation plan.
Redcar and Cleveland Borough Council approved the company’s application following a detailed consultation period.
North Lincolnshire Council is set to decide imminently on its application to build another Electric Arc Furnace (EAF) at its Scunthorpe site.
The manufacturer’s proposed transformation – its biggest in more than a century of steelmaking – is subject to appropriate support from the UK Government.
British Steel President and CEO Xijun Cao said: “We’re delighted to have received planning permission to build an Electric Arc Furnace at our Teesside site, and thank everyone who has supported our proposals to bring steelmaking back to the region.
“The proposed installation of EAFs in Scunthorpe and Teesside is central to our journey to a green future, as they would help us reduce CO2 emissions by more than 75 percent. However, it is crucial that we now secure the backing of the UK Government.
“Our owner, Jingye, is committed to the unprecedented investment decarbonisation requires. Our desire to dramatically reduce our carbon footprint, coupled with challenging market conditions, means swift and decisive action is imperative to ensure a sustainable future for British Steel.
“We started talks with the UK Government in 2022 about the timely support we require on our journey to net zero, including the need for the British government to adopt the correct policies and frameworks to back our drive to become a clean, green, and successful company. We are committed to working with the UK Government and must reach an agreement quickly to achieve our ambitious goals, secure thousands of jobs, and keep making the steel Britain needs for future generations.”
Significant preparation works, including environmental and technical studies and equipment selection, are underway to ensure the company’s ambitious proposals can be delivered as soon as possible while discussions with the UK Government continue.
Both proposed EAFs would replace the aging iron and steelmaking operations at British Steel’s Scunthorpe site which are responsible for the vast majority of its CO2 emissions. The company proposes to maintain its current operations until a transition to electric arc steelmaking.
British Steel has started preliminary talks with trade unions about electrification and has promised to support employees affected by its decarbonisation plans.
Xijun said: “We are confident our proposals will help secure the low-embedded carbon steelmaking the UK requires now and for decades to come.”
Detailed studies show electrification would enable British Steel to continue making the products its customers require. A special paper explaining how EAF technology can produce all steel products and grades by managing the raw material mix has been published by UK Steel. Read more here.
