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British Steel’s Ambitious Decarbonization Plan Gets the Green Light

Jun. 06, 2024

British Steel's Ambitious Decarbonization Plan Gets the Green Light


In an April 2 announcement, steel industry leader British Steel stated that the Redcar and Cleveland Borough Council recently approved new equipment following a detailed consultation on its decarbonization project. British Steel originally announced its plans to replace the furnaces at Scunthorpe and Teesside in September under plans that would see the steelmaker cut its carbon emissions up to 70%.


"Significant preparation works, including environmental and technical studies, and equipment selection, are underway to ensure the company's ambitious proposals can be delivered at the earliest opportunity while discussions with the UK Government continue," the company noted.


However, the company did not indicate what sort of capacity the planned EAF would have or when work was tentatively due to begin. "It is important we transform our business at the earliest opportunity to secure a sustainable future for British Steel," a British Steel spokesman told MetalMiner.


Decision Means Major Changes to the UK Steel Industry


Teesside lies in an area of the same name in northeast England on the North Sea. The site had one blast furnace that could produce 3.7 million metric tons of pig iron and three 260-metric ton BOFs capable of pouring 3.9 million metric tons of crude steel annually. However, that equipment stopped all steel production in 2015.


British Steel's Ambitious Decarbonization Plan Gets the Green Light


Further downstream, Teesside can roll heavy sections for the construction industry. The plant apparently receives billets from the Scunthorpe site, which casts billets as well as slabs. Scunthorpe also rolls section, wire rod, and rail.


China's Jingye Group acquired the company from London-headquartered Greybull Capital in 2020 and renamed it British Steel as a condition of its purchase. Greybull, which focuses on investments in distressed conditions, originally acquired the assets from Tata Steel Europe in 2016.


British Steel Wins Rail Contract


Also in April, British Steel won a major contract to supply 9,500 metric tons of rail for Egypt's Green Line, which will run from the Red Sea to the Mediterranean Sea.


British Steel's Ambitious Decarbonization Plan Gets the Green Light


"The network is 660 kilometers long and will carry trains – for both passengers and goods – up to a maximum speed of 250 kilometers per hour (155 miles per hour) with British Steel among a number of key suppliers providing rail to the project. Rail supplied is 60E1 in grade R260, each at 18 meters in length," British Steel noted in its April 2 announcement.


According to a September 2021 article from German weekly news magazine Der Spiegel, the tentative completion date for the project is 2027.

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