Source · Select Committees · Business and Trade Committee
Recommendation 35
35
Paragraph: 176
We found broad agreement that the UK should retain a primary steelmaking capacity rather than...
Recommendation
We found broad agreement that the UK should retain a primary steelmaking capacity rather than push its emissions and business abroad, a point recognised in the Government’s own Industrial Decarbonisation Strategy. However, if the Government is serious about its emissions targets and given that the nation’s blast Liberty Steel and the Future of the UK Steel Industry 67 furnaces will soon need to be replaced, if the UK is to retain its primary steelmaking capacity then key decisions and certainty are needed imminently. The Government’s Industrial Decarbonisation strategy has so far failed to provide this certainty and the Government must step up its efforts to provide industry with direction and a supportive policy environment to enable it to transition to a low carbon future.
Paragraph Reference:
176
Government Response
Not Addressed
HM Government
Not Addressed
77. We are working with the sector to better understand their decarbonisation investment plans. These plans may include switching to Electric Arc Furnace (EAF) production methods, carbon capture, usage and storage (CCUS) on existing blast furnaces, hydrogen steelmaking, or other decarbonisation activities. 78. It is important that we work with industry to understand the commercial decisions they will be taking for the future of sites so that any potential Government support is utilised as effectively as possible. The optimum decarbonisation route for each site will be different and, which route is best is a commercial decision for the companies operating these sites. 79. The Net Zero Strategy, published in October, outlines all existing and new support available for industrial decarbonisation projects, for which the steel sector will be able to bid. 80. Further to the Net Zero Strategy, our work on growing the circular economy has focused attention on how the steel scrap market contributes to our ambitions, both on resource efficiency and the decarbonisation agenda. We look forward to working closely with both the steel and scrap sectors to find mutually beneficial solutions in this area.