3rd November 2023
Another industry highly dependent on energy is the steel industry. Traditionally that has come from coal, but electric furnaces are providing a less environmentally damaging alternative, producing what is termed ‘green steel’. Providing investment to enable British based steel plants to switch is becoming an election issue. The Guardian reported that “Labour is promising to invest £3bn in smoothing the green transition should it win power at the next election. This is substantially more than the offers made by Mr Sunak’s government to Tata Steel and the Chinese Jingye Group, the respective owners of the Port Talbot works and British Steel. As Sir Keir pointed out, with the right kind of backing and vision from Westminster, domestic steel production can become a crucial component in meeting Britain’s clean power targets. That, in turn, will help protect good, well-paid jobs in regions that desperately need them. Britain is set to require more, not less, steel as it builds net zero machinery and infrastructure at pace. That can be a catalyst for industry renewal, if a committed government shows the drive and imagination to make it so. New public procurement rules, for example, could ensure the use of clean British steel in the manufacture of wind turbines, rather than reliance on imports from abroad.” https://www.theguardian.com/commentisfree/2023/oct/24/the-guardian-view-on-labour-and-the-steel-industry-how-to-forge-a-better-future?CMP=Share_iOSApp_Other
Nothing is straight forward. To add to this story, it seems that switching to electric furnaces has to further knock on effects. First the furnace needs fewer people to operate it, so the switch comes with redundancies. We should be aspiring to a just transition to net zero which means we should be looking to create jobs for those facing redundancy. This could involve reskilling people for work in the green sector eg building and installing wind turbines, heat pumps, solar panels, etc. Second – and which is a positive really – electric furnaces don’t produce steel from iron ore but by recycling steel and iron.
The Green Tau 