Government seeks views on £250m fund to clean up steel sector

The Clean Steel Fund aims to help the industry move towards a decarbonisation pathway compatible with the 2050 net zero goal

The government is seeking views on a £250 million fund that aims to support the UK steel sector towards reducing its carbon emissions.

It has launched a consultation on the Clean Steel Fund as part of its efforts to help the industry move towards a decarbonisation pathway compatible with Britain’s 2050 net zero goal.

The fund will seek to support the sector to transition to lower carbon iron and steel production through new technologies and processes as well as maximise longevity and resilience by building on expertise and skills and harnessing clean growth opportunities.

The integrated steelworks in Scunthorpe and Port Talbot are the two largest industrial sources of UK carbon emissions and overall the steel sector contributes 15% to industry emissions.

According to BEIS, current evidence shows options for reducing emissions from steel in primary and secondary production can be grouped into three categories: switching to lower carbon fuels, including hydrogen; industrial carbon capture (ICC); and energy and material efficiency.

Tacking industrial emissions would also lead to improvements in air quality, with associated benefits for public health and the environment.

The call for evidence is inviting views and supporting evidence to help the government develop the fund, including on barriers to realising clean steel ambitions and the opportunities to be gained in overcoming these.

The consultation is open until 21st November 2019.

The news comes after the Turkish Armed Forces Assistance Fund known as Oyak entered exclusive talks with the UK Government to buy British Steel.

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