British Steel to Transition to electric Arc Furnaces with Government Backing
CARDIFF, WALES – Buisness Secretary Kemi Badenoch has voiced support for British Steel’s planned shift to electric arc furnace (EAF) steelmaking, a move expected to considerably reduce carbon emissions at the company’s plant. While acknowledging the transition, badenoch emphasized the importance of ”maintain[ing] primary steelmaking capacity here in the UK.”
The move away from traditional blast furnaces – which release substantial amounts of carbon dioxide - represents a major change for the UK steel industry. EAFs utilize electricity to melt down scrap steel, offering a lower-carbon option.
The government is also exploring investment in a separate facility to produce direct reduced iron (DRI) using clean hydrogen, potentially preserving primary steelmaking capabilities while minimizing emissions. Though, the financial feasibility of this arrangement remains a concern among industry sources.
Frank Aaskov, director of energy and climate change policy at UK Steel, stated it was “encouraging to see the secretary of state set out a clear future vision for the UK steel industry and British Steel.” Aaskov also highlighted the need for “a stronger business surroundings through lower power prices and robust trade policies” to support the industry’s transition.
Badenoch made the comments while visiting Cardiff to discuss productivity improvements with small businesses, focusing on the role of digital technology and AI training. She indicated the government intends to take a “greater role” in coordinating AI training initiatives for companies.
