Unions propose keeping British Steel’s Scunthorpe furnaces running during the shift to electric furnaces, urging government action on carbon costs.
GMB, Community, and Unite talked to Jingye Group, who owns British Steel. They proposed keeping two furnaces going during the change to electric furnaces, aiming for low-carbon steelmaking.
GMB said British Steel seemed receptive to the idea, but the government needs to act on carbon expenses. The company saw the union’s plan as credible and accepted some findings from Syndex, steel consultants.
Charlotte Brumpton-Childs, GMB National Officer, said the plan keeps two furnaces open while changing to low-carbon methods. Keeping furnaces improves the transition, and protects many jobs.
Jingye liked the plan, seeing strong points for keeping the furnaces. High carbon costs are a big problem under current government rules.
The plan needs government relief from policy costs, as other European nations already did. Jobs and steelmaking risk loss due to carbon costs. British Steel needs a fair change to low-carbon methods.
A British Steel person said they are talking to the government to discuss decarbonization plans. They are also discussing the future of UK operations; progress happens, but decisions need to be made.
This union plan came after news reports that British Steel might skip building an electric furnace for Teesside. Instead, two furnaces could be in Scunthorpe. British Steel said no final decisions existed.
British Steel secured permission for an electric furnace in Scunthorpe during April 2024. This permit needs agreement on furnace shutdown times.
At the meeting, British Steel said furnaces would continue until the electric furnace runs fully. Questions arose about this plan late in the summer because building this furnace takes about 22 months, according to a planning document.
The Department for Business was contacted for comment. The government pledged £2.5 billion for steel in this term and made a Steel Council. Industry leaders advise on steel strategy.
