Independent review
Completed
Materials Processing Institute: UK primary steelmaking review 2025
A government commissioned report from the Materials Processing Institute (MPI) to assess UK primary steelmaking technology, to inform the UK steel strategy.
Government Response
The UK Steel Strategy (DBT, 20 March 2026) is the government's policy response to the DBT-commissioned Materials Processing Institute primary steelmaking review (published 19 March 2026). The strategy adopts the review's conclusions, confirming electric arc furnaces as the most viable decarbonised production route and identifying direct reduced iron as the most viable domestic primary-iron option.
Recommendations
Recommendation A
Pursue options and mechanisms to cut, rebate or guarantee lower energy prices to steelmakers and primary ironmakers in order to protect the UK steel supply chain as a whole
Recommendation B
It is recommended to future proof UK primary iron capability by commissioning a detailed feasibility study be carried out for a single national hydrogen-ready NG DRI plant which can fully decarbonise the feedstock, act as some inertia on the grid (ie increase productivity during surplus renewable energy events) and integrate with ports, and domestic transport links to follow scrap routes to steelworks. Commission a feasibility study including maximum viable energy price, for a 2MT hydrogen ready DRI plant to be on stream by 2028. Should the Steel Strategy be aiming for production levels above 'return to business as usual' then this is recommended as being of high importance and urgency.
Recommendation C
Explore a more phased capex and opex option for DRI via a comparative study on modular batch reduction options or integrated reduction and melting options delivering green pig iron substitute
Recommendation D
Explore co-investment in international 'green iron corridor' assets
Recommendation E
Support R&D into EAF steelmaking with scrap and OBM blends based on UK supply as an issue of high importance and urgency. Maintain an active national R&D and innovation capability including close co-operation with Horizon Europe.
Recommendation F
Consider and active accelerator programme for new ironmaking technology developments (ESF, plasma reduction, electrolysis and chemical routes as well as modular DRI)
Recommendation G
Consider equitable transition / green steel 'contracts for difference' guarantees within the public procurement framework for steel products
No recommendations with this response.