British Steel, a UK-based steel manufacturer, has unveiled ambitious plans to construct two electric arc furnaces with a combined investment of £1.25 billion. These eco-friendly furnaces will be located at the company's Scunthorpe and Teesside facilities, signaling a major step in their commitment to reduce carbon emissions.
British Steel is currently awaiting crucial support from the UK government to bring this decarbonization project to fruition. The target is to have the new furnaces operational by late 2025, a move that will pave the way for retiring the aging iron and steelmaking processes in Scunthorpe, which are responsible for a significant portion of the company's carbon emissions. British Steel intends to maintain its current operations until the transition to electric arc steelmaking is complete.
Xijun Cao, the CEO of British Steel, expressed confidence in the proposed plan, highlighting its potential to secure low-embedded carbon steel production for the UK in the present and for many years to come. However, he stressed the importance of the UK swiftly adopting the necessary policies and frameworks to support their decarbonization efforts. Cao pointed out that other countries with major steel-producing competitors have already implemented such policies, emphasizing that any delay in the UK's adoption could impact their competitiveness and the nation's ability to achieve its carbon reduction goals.
In alignment with their environmental goals, British Steel has set a target to achieve net-zero steel production by 2050. Furthermore, they aim to make significant reductions in their carbon intensity by 2030 and 2035, marking a substantial commitment to a more sustainable future.
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