The report “Growing Clean Steel in the UK” by E3G highlights that without a plan, the UK may end up losing out on primary steel production – with consequences for jobs, the competitiveness of other sectors, and strategic national interests. Avoiding that scenario is within easy reach.
A more supportive policy framework and public investment of just £2.1–3.5bn can put the UK on the path to a clean steel future that supports both the economy and people. UK steel demand is set to grow 26% by 2030. As an extremely carbon-intensive material – production making up 2.4% of the UK’s territorial emissions – it is crucial that the UK decarbonise its steel supply to mitigate the impacts of climate change. A brighter future for UK steel is possible. If the UK invests in low-emissions primary steelmaking, with iron produced using low carbon hydrogen, it can secure a higher number of jobs, establish a secure domestic supply of primary steel, mitigate supply chain dependencies, and support a wide range of strategic and economic priorities.
Additionally, as the world shifts to near-zero emissions of steelmaking, green iron hubs are likely to emerge in countries with abundant renewables and iron ore resources. This presents an opportunity to import green iron to process into primary steel domestically, complimenting UK assets and increasing total capacity. On top of support for the upfront cost of new low-emissions steel plants, the government needs to act quickly to improve the overall investment environment for clean steelmaking. At present, high electricity prices and a lack of an overarching plan for the growth of UK manufacturing have created uncertainty for investors considering the UK.
Access the complete report here
