Bright future for UK steel?
A Green Alliance report models the future of the UK market for steel, showing its potential to grow by up to 26% by 2030.
Two thirds of this projected growth will come from net-zero needs.
The UK steel industry is seeking government support to help it reduce its emissions and improve its competitiveness.
The report shows that the better use of steel could reduce its embedded carbon by 14% and cut emissions from the UK steel industry by at least 6% in 2030.
The report calls on the steel industry to ‘green its production while adopting new business practices that improve synergy with end markets’.
It also calls on government to support the transition ‘by creating a favourable investment environment, supporting UK manufacturing and increasing requirements around resource efficiency’.
The recommendations for the steel Industry are:
- Shift steel production to electric arc furnaces (EAFs)
- Minimise steel waste during processing and improve scrap recovery
- Invest in processing capacity for scrap steel and for high value products
- Investigate other new business models for the industry, such as leasing, buy back schemes or circular stockholding.
The recommendations for the government are:
- Create a more favourable investment environment
- Offer match-funded capital support, including for a hydrogen direct reduction facility supplying low-carbon iron to UK industry
- Have dedicated strategies for reshoring manufacturing industries using steel and growing sectors like renewables
- Drive faster uptake of low carbon steel and resource efficiency in the industry, e.g., through mandatory Scope 3 (upstream and downstream) emissions reporting and product standards, and by extending public procurement, carbon footprint and circularity requirements across the UK
