A green steel deal signed by Liberty in Australia should trigger an overhaul of Britain’s beleaguered industry, campaigners urged today.
London-based Liberty Steel, which has plants across the UK, will buy a 160-tonne electric arc furnace to replace polluting coal-based production at its Whyalla factory in South Australia - and will get $50million from the Canberra government to help fund the shake-up.
The firm said it would lead to a 90% reduction in direct C02 emissions from steelmaking by 2025, compared with traditional coking ovens and blast furnace manufacturing.
Liberty, which is also overhauling iron production, added: “The full transformation plan will create additional permanent direct jobs, and redeployment, training, and development opportunities for employees.”
Liberty’s executive chairman Sanjeev Gupta said: “Today marks the beginning of a new era placing Whyalla at the heart of a global revolution in the steel industry, moving it from being the most polluting of all industries to among the cleanest and greenest.
“Through the steps we’re taking to install state-of-the-art, low carbon iron and steelmaking technologies here in Whyalla we will not only support Australia’s climate ambitions, but we will help to decarbonise steel supply chains globally.”
Supporters of Britain’s steel sector say the agreement should show UK ministers how companies and governments can work together to protect steelmaking while switching to environmentally-friendly manufacturing, as the Government races towards making Britain net-zero by 2050.
Steel is blamed for 14% of the UK’s industrial emissions and 2.7% of all Britain’s greenhouse gases.
It employs 34,500 people directly in the UK and supports a further 43,000 in supply chains.
Ministers and industry chiefs have been locked in negotiations about funding to help the sector switch to greener production.
But an Energy and Climate Intelligence Unit study last month revealed Britain has just one planned “green steel” project, compared with 38 in the EU.
Ten plants on the Continent already produce green steel.
Community steelworkers’ union National Officer Alun Davies said: “While our Government continues to drag its feet, other countries are not hesitating to back their steel industry as it transitions into green steel production.
“The Australian example goes to show what can be achieved when government and private companies work together, with the entire Australian public enjoying the reward.
“Britain too deserves a strong industry producing green steel, but to achieve that we need an ambitious government that is on the side of our steel industry.”
Labour MP Stephen Kinnock, whose Aberavon constituency includes Tata’s Port Talbot steelworks and who chairs the All Party Parliamentary Group on Steel, said: "Britain was the cradle of the first Industrial Revolution and we have the potential to lead the way on the new Green Industrial Revolution - but only if the Government backs green steel with a policy framework and level of investment enjoyed by competitors in other developed nations.
“Liberty Steel's progress in Australia illustrates what can be achieved.
"With global steel demand set to be even higher in 2050 and with the need to secure our manufacturing supply chains in a turbulent world, we need our steel industry - for national resilience, well-paid jobs and to support the transition to the green economy."
Shadow Business Minister Bill Esterson said: "While this is fantastic for steelworkers in Australia this is the kind of investment we could and should be seeing here in Britain.
"While other countries are pulling ahead British steelworkers are left in limbo with a Government that refuses to back the bright future our steel sector could have.."
The GMB urged Britain to catch up with international rivals.
“We’ve already seen how Europe is streets ahead of the UK in terms of steel decarbonisation,” said the union’s national officer, Charlotte Brumpton-Childs.
“Investment is needed here and now. The industry desperately needs ministers to secure competitive market conditions for this country.
“Basically we are doing too little, too late."
Unite national officer Linda McCulloch said: "Once again, Britain's vital steel industry is being overtaken by other nations whose governments have had the foresight to invest in the low carbon technologies necessary for the sector's future.
"Allowing low carbon steel production to flourish in the UK is still possible.
"Not only would it protect and create thousands of skilled jobs but it is also crucial to interests of the nation. Time is running out; the Government needs to put forward the support and investment necessary to make green steel in Britain a reality."
Rishi Sunak last month Insisted he wanted a “thriving steel industry in our United Kingdom”, adding: “The Government’s recently-announced British industry supercharger fund can help boost competitiveness in the UK’s key energy-intensive industries.”
Ministers say that under the plan, 300 businesses “will benefit from targeted measures to ensure the energy costs for key UK industries are in line with other major economies around the world”.
The Mirror has been campaigning to Save Our Steel since 2015.
