Iron and Steel: Manufacturing Industries

Department for Business, Energy and Industrial Strategy written question – answered on 14th June 2021.

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Photo of Seema Malhotra Seema Malhotra Shadow Minister (Business, Energy and Industrial Strategy)

To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans his Department has to support hydrogen pilots in steel production.

Photo of Nadhim Zahawi Nadhim Zahawi Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), The Parliamentary Under-Secretary for Health and Social Care

The Industrial Decarbonisation Strategy, published on 17 March, commits to work with the newly constituted Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’.

Hydrogen-based steelmaking, CCUS*, and electrification are some of the technological approaches being examined as part of this process. The Steel Council offers the forum for government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future.

In order to support these efforts, the Government has announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes. The decarbonisation of the steel sector and industry more widely will also be supported through the £1 billion CCUS Infrastructure Fund (CIF) and £240m Net-Zero Hydrogen Fund.

*carbon capture, utilisation and storage

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