British Steel unveils electric arc furnace plans

British Steel has unveiled a £1.25bn proposal to become a clean, green and sustainable business by adopting electric arc furnace (EAF) steelmaking.

The plans, which are subject to appropriate support from the UK Government, could see British Steel install two EAFs – the first at its Scunthorpe headquarters and a second at Lackenby, Teesside.

The new furnaces could be operational by late 2025 and would replace the aging iron and steelmaking operations in Scunthorpe, which are responsible for the vast majority of the company’s CO₂ emissions.

British Steel CEO and President, Xijun Cao, said: “Decarbonisation is a major challenge for our business but we are committed to manufacturing the home-made, low-embedded carbon steel the UK needs.

“Detailed studies show electrification could rapidly accelerate our journey to net zero and drive British Steel towards a sustainable future.”

Commenting on the proposals, which would mean steelmaking returning to Teesside for the first time since the Redcar Steelworks closed in 2015, Tees Valley Mayor Ben Houchen said: “I made a promise to the people of Teesside, Darlington and Hartlepool that I would bring steelmaking back. Today I am delivering on that pledge.

“As Teessiders, we know that steel is in our blood – and the closure of our steelworks was an historic injustice which needed to be addressed.

“But with the construction of a new electric arc furnace we will see Teesside restored to its rightful place as a global leader in the steel industry, delivering well-paid jobs and investment for now and future generations.