British Steel’s Net Zero plan set to emerge – as switch sees brace for job losses

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British Steel looks set to commit to the next phase of its Net Zero journey, but it could come at a further cost to jobs.

An announcement is anticipated on a move towards electric arc steel production in Scunthorpe and Teesside, with the loss of blast furnace capability at the former. With it could go between 1,500 and 2,000 jobs in the mid-term, it is speculated, due to it being a far less labour-intensive process.

It is understood government support for the key transition towards industry decarbonisation and sustainability could also have been finalised, with a deal believed to have been structured for some time. There has been no immediate comment from the Scunthorpe headquartered firm, owned by the Chinese Jingye Group for the past three-and-a-half years.

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It comes just months after coke production ceased with the closure of the ovens, removing an initial process from the traditional steel-making. The vast majority of jobs were then saved.

In October 2021, 18 months after entering new ownership following the Greybull-led collapse, a roadmap to Net Zero was unveiled.

At the time, British Steel chairman and chief executive of parent company Jingye, Huiming Li, said: “We firmly believe our products can play a central role in transitioning to a low-carbon, circular economy and we have ambitious plans to reduce the carbon intensity of our operations, with solutions that are globally recognised and accepted.

“Embracing new technology and ways of working will help our drive towards a phased reduction of CO2 emissions by 2030, 2035 and 2050. And while there is no doubt decarbonisation is a major challenge for our business – the biggest we have faced in 130 years of steelmaking – we’re committed to creating a clean, green and sustainable future for British Steel.”

The Scunthorpe site is a major contributor to the Humber’s position as the most carbon-intensive industrial cluster in the UK. Major plans for hydrogen production and carbon capture and storage involve the steelmaker.

Original artice – https://business-live.co.uk/all-about/yorkshire-humber

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British Steel’s Net Zero plan set to emerge – as switch sees brace for job losses

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