A single, technical phrase is at the heart of the conflict over UK steel: “primary steelmaking.” Business Secretary Peter Kyle’s new plan to back electric arc furnaces (EAFs) would, for the first time, “raise questions” about the future of this capability.
“Primary steelmaking” is the ability to “produc[e] steel from iron ore.” This is what Scunthorpe’s massive blast furnaces do. They take raw materials and create new, “virgin” steel. This is strategically vital for a nation, as it ensures it is not reliant on scrap or imports for its core industrial and defence needs.
The problem is that this process is “carbon-heavy,” venting “huge amounts of carbon dioxide.” The government’s new priority, net-zero, makes this process an environmental liability.
This is why Kyle is backing EAFs. But EAFs “use electricity to melt down scrap steel.” They are, effectively, giant recycling plants. While “cleaner,” they cannot create virgin steel, and thus the “primary steelmaking” capability is lost.
This is the pledge the government made in April and the one unions are fighting to “maintain.” The only “fix” is a “financially dubious” hydrogen (DRI) plant. The December strategy will decide if the UK remains a primary steelmaker or becomes a high-tech steel recycler.