Government commits to electric arc furnaces at British Steel

The government is working on a new steel strategy, which will be launched in December 2025. It is expected to include a shift towards greener steel.

Peter Kyle, the business secretary, supports a transition to electric green arc furnaces at British Steel, but has not commented on the future of all blast furnaces used for UK steel production.

In global markets, steelmaking faces many challenges, including the impact of the USA tariffs imposed by Donald Trump. To remain competitive, steelmakers must adopt cleaner steel production methods with lower carbon emissions to meet the industrial demand for more sustainable materials.

UK steelmakers have relied on blast furnaces as the primary means of making steel, but these emit large quantities of carbon dioxide into the air, which is linked to global warming. Electric arc furnaces can be powered by renewable energy sources and use a high proportion of recycled steel.

The government has pledged to support the British steel industry, which employs thousands of workers. It has allocated £2.5 billion in financial aid, of which millions have already been spent to keep steel production going at Liberty Steel, British Steel and other manufacturers. However, using the allocated money to support steel production means less capital investment.

Warehouse shelving and manual handling equipment are made mainly from steel. If a warehouse equipment producer can source green steel at a reasonable cost, this aligns with the environmental polices of warehouse owners who are committed to sustainable materials.

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