Steel furnaces could be exposed to surging cost of natural gas

SEATTLE (Scrap Monster): Natural gas could fuel UK steel furnaces despite global prices soaring.

The plan, contained in No.10's steel strategy, which was finally published last week, is designed to help the industry 'to achieve net zero and remain competitive in global green steel markets'. 

In it ministers signalled the end for Britain's last two coal-fired blast furnaces, which cost £1.3 million a day to subsidise, replacing them with electric arc furnaces.

An arc furnace set to produce 3 million tons of steel a year is being built at Port Talbot, South Wales, and the two blast furnaces at Scunthorpe, Lincolnshire, may be replaced with arc furnaces too. 

But these furnaces only recycle scrap steel and the Government still wants to retain the ability to produce stronger, virgin steel. The strategy proposes to do this through gas-fired plants, which could later be switched to use green hydrogen once supplies are available.

This means the UK steel sector would be even more exposed to volatile gas prices on global markets, which have soared due to the US-Israeli war with Iran.

Andrew Griffith, Shadow Business Secretary, said: 'Only this energy-illiterate Government could advocate a switch from stable coal to volatile gas in the middle of an energy price spike.'

Courtesy: www.msn.com