The UK government should take the opportunity to fast track industrial carbon capture utilisation and storage (CCUS) after taking ownership of British Steel’s Scunthorpe plant, according to the UK industry trade body, the Carbon Capture & Storage Association (CCSA).
Hard-to-abate sectors, including steel, cement and chemicals, account for around 14% of UK emissions. For steel, CCUS offers a viable pathway to retain primary production while cutting emissions.
Olivia Powis, CEO of the CCSA, said “CCUS is not optional – it is a key technology to preserve the UK’s industrial heartlands and achieve Net Zero. With the Spending Review approaching, the government must fast-track CCUS deployment to drive growth, demonstrate climate leadership, and protect livelihoods.”
Two shipments of raw materials (coking core, iron ore) which will keep the blast furnaces operational are due to arrive today.
Last Saturday, the UK government took control of the plant from Chinese owner Jingye, which threatened closure after claiming it was losing £700,000 a day.
Powis said the emergency action reinforced the need for clear and timely policy decisions to safeguard industrial sectors across the UK.
“A competitive and sustainable steel industry must be equipped with the technologies required to deliver affordable, low-carbon domestic production,” she said.
Source: CCSA
“This equally applies to other foundational industries, such as cement and chemicals, where the rapid deployment of CCUS will play an essential role in preventing the decline of these sectors and unlock substantial growth opportunities for the UK.”
The Climate Change Committee states that 50 million to 60 million tonnes of CO2 must be captured annually by 2035 to meet carbon budgets.
Last year the UK steel industry contributed £1.7bn to the UK economy in terms of gross value added (GVA) and produced 5.6 million tonnes, but this represented just 0.8% of UK manufacturing output and 0.3% of the world’s total steel production.
Excess capacity in the global steel industry has created a glut of steel on the international market. This has pushed steel prices down, putting pressure on the UK steel industry, where overheads, especially electricity prices, are higher than in many countries.
Hydrogen-based green steel output could reach 46 million tonnes by 2035, according to a new report from technology research firm IDTechEx.
However, high hydrogen costs, infrastructure gaps and policy uncertainty risk slowing progress – and 46 million tonnes is only about 2.5% of annual steel production.
