Source · Select Committees · Business and Trade Committee
Recommendation 36
36
Paragraph: 185
We identified enthusiasm from many witnesses for the use of hydrogen direct reduced iron as...
Conclusion
We identified enthusiasm from many witnesses for the use of hydrogen direct reduced iron as a technology well-suited to decarbonising the UK steel industry. However, as with other potential solutions, it is a technology that remains untested at scale. A pilot of hydrogen-based steel production in the UK would help to inform future decisions on decarbonisation; create initial capability; develop UK-based expertise; and facilitate a switch to hydrogen once the technology is proven.
Paragraph Reference:
185
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.