Commenting on the Prime Ministers’ announcement on new green initiatives, UK Steel Director General, Gareth Stace, said:
“The PM’s new Ten Point Plan, including heightened ambition on Carbon Capture and Storage, Hydrogen, and Offshore Wind is to be welcomed by industry. These are bold steps to help reduce the UK’s carbon emissions and critically include measures that will help the steel sector in its green transition.
“Crucially, new green infrastructure is precisely what the economy needs to rebound, and the UK steel industry is ready to support the Government’s build back better strategy by supplying the world-class steel that is essential for our offshore wind, energy-efficient buildings, electric vehicles, and hydrogen networks. It is critical that the Government expands this infrastructure strategically, ensuring that these projects support jobs and growth in the UK, and delivering the largest possible return for taxpayers money by maximising the UK content of these major projects. The Government must set clear objectives for steel procurement in these major projects, as happens in the United States.”
“However, despite these positive steps, the Government’s continued silence on industrial electricity prices remains a major concern. All options of decarbonisation will lead to higher electricity use for the steel sector and many other industries, making high power prices a substantial barrier to meeting the Net Zero target.”
ENDS.
Notes:
About UK Steel: UK Steel, a division of Make UK, is the trade association for the UK steel industry. It represents all the country’s steelmakers and a large number of downstream steel processors.
UK steel in numbers:
- Produces 7.3 million tonnes of steel a year, around 65% of the UK’s annual requirement[1]
- Employs 32,600 people directly in the UK and supports a further 41,100 in supplies chains[2]
- The average steel sector salary is £36,238, 18% higher than the UK national average and 36% higher than the regional average in Wales, and Yorkshire & Humberside where steel sector jobs are concentrated[3]
- Makes a £2.8 billion direct contribution to UK GDP and supports a further £3.6 billion[4]
- Makes a £2.5 billion direct contribution to the UK’s balance of trade[5]
[3] ONS – Annual Survey of Hours and Earnings
[4] ONS GDP Output – low level aggregates 2019 and type 1 multiplier
[5] International Steel Statistic Bureau – UK steel exports net of import of raw materials/inputs