The UK will need more than ten million tonnes of steel over the coming years to become more energy self-sufficient, according to the latest figures.
The UK Government set out plans to secure ‘clean and affordable’ energy in its Energy Security Strategy earlier this year, and Teesworks projects like SEAH's turbine base factory and bp's plans for NZT Power are keeping the region at the centre of attention as greater self-sufficiency has become vital after global events led to rocketing energy prices and significant government interventions in the energy market to cap prices.
As well as five million for the wind turbines work, planned solar and nuclear power plants which would power future Britain are expected to require about 3.5 million tonnes of steel over the coming years.
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An estimated 1.5 million tonnes of steel will be needed to build the infrastructure for hydrogen production and distribution as well as large-scale carbon capture (CCS) projects.
Henrik Adam, Chairman of Tata Steel UK which has a pipe mill at Hartlepool, said: “Recent events have shown us just how crucial it is to have a secure energy supply. Achieving this will need an energy revolution in this country requiring millions of tonnes of steel to build new energy generation projects.
"A strong domestic and secure steel industry is also fundamental to delivering the UK Government’s ambitious energy plans.
“But if British manufacturers are to supply the essential steel and continue to employ many thousands of people in this country, we need to invest and transform this strategically-important industry so it can make carbon-neutral steel.
“Similarly, our steel industry is at a crossroads – if we do nothing, we risk it declining and drifting away to other countries. Down the other path is a new era in which we transform the steel production process to make it fit for the 21st Century.”
Henrik added: “Geo-political events and disruptive trade issues in recent years have reminded us of the importance of being self-sufficient in essential products like steel, a product critical for the UK’s infrastructure projects, manufacturing industry and national security.”
Roy Rickhuss CBE, General Secretary of Community and NTUSCC Chair, said: “The green energy revolution presents a huge opportunity to build a robust British supply chain based on the supply of top-quality domestic steel."
Gareth Stace, Director General of UK Steel, said: “These numbers clearly demonstrate the huge opportunity the energy transition represents not just to reduce emissions but to boost the UK economy, UK manufacturing and the UK steel sector.
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“The UK already has the largest offshore wind sector in the world, but with a target to increase capacity by 400% this decade we are only just getting started. Opportunities have been missed in the past to establish a full UK supply chain for this sector, but with so much growth still in front of us, this is the time to get this right. Similar opportunities exist in our expansion of nuclear, solar and the roll-out of CCS and hydrogen networks.
“The UK steel industry is in a prime position to supply the steel for this new UK energy infrastructure and doing so will help maximise the jobs and economic growth the energy transition can deliver for the UK.
“Producing UK energy from UK steel is the green industrial revolution in practice, creating green jobs, economic growth and levelling up.”
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