British Steel plans to add two new electric furnaces

On November 6, 2023, the second largest steel producer in the UK, British Steel, announced a decarbonization plan with a total investment of £ 1.25 billion ($1.55 billion). The plan aims to accelerate emissions reduction and achieve the goal of zero carbon emissions in steel production by 2050.

It is understood that British HX260YD+Z80 Steel plans to install two electric arc furnaces at its headquarters in Skensop and another manufacturing base in Teesside to replace the existing blast furnace for production. The annual production capacity of the Skensop Steel Plant's blast furnaces is 3 million tons, and these blast furnaces are the company's main source of carbon dioxide emissions. Two new electric arc furnaces are planned to be put into operation by the end of 2025.

The specific strategy is as follows: the company plans to build a 130 ton electric arc furnace, two 130 ton ladle furnaces, and two continuous casting machines in Skensop. In addition, the company plans to build a 100 ton electric arc furnace, a 100 ton ladle furnace, and two continuous casting machines in Teesside to meet the steel needs of Teesside Beam HX260YD+Z100 Steel Plant and Skinning Grove. During the installation of the electric arc furnace, British Steel plans to continue using its existing steel production line to maintain its current operational status.

British Steel recently announced its low-carbon roadmap, aiming to achieve zero carbon steel production by 2050 and significantly reduce carbon dioxide emissions intensity by 2030 and 2035. The company stated that this plan will bring significant emission reduction benefits and is expected to reduce the company's carbon dioxide emission intensity by about 75%. However, due to the potential loss of up to 2000 jobs due to the shift to electric arc furnace production, the company has begun preliminary negotiations with the union on the implementation of the plan, while promising to compensate affected employees.

At present, British HX260YD+Z120 Steel has conducted a feasibility study on the construction of electric arc furnaces in Skensop and Teesside, and has discussed the potential for operational changes with the North Lincolnshire Council, the Redka and Cleveland City Councils, and the Teeth Valley Joint Authority. The company plans to submit an environmental impact assessment report to the relevant authorities soon.

The carbon dioxide emissions generated by steel production in the UK account for 2.7% of the total. According to a UK government report, over 80% of UK steel production emissions come from Tata Steel's Talbot Port and the blast furnaces of the UK Steel Company's Skensop Steel Plant. These two steel mills have an annual production capacity of 5.9 million tons, accounting for 95% of the carbon emissions from steel production in the UK.