德州撲克中文版 today unveiled ambitious plans for the biggest transformation in its history 鈥 a 拢1.25-billion proposal to become a clean, green and sustainable business by adopting electric arc furnace steelmaking.
Following detailed analysis of its current operations, available technology and challenging market conditions, the company is proposing to accelerate its decarbonisation programme.
The proposals, which are subject to appropriate support from the UK Government, could see 德州撲克中文版听install 2 electric arc furnaces (EAFs) 鈥 the first at its headquarters in Scunthorpe, the second at its听manufacturing site in Teesside.
The new furnaces could be operational by late 2025 and would replace the aging iron and steelmaking听operations in Scunthorpe which are responsible for the vast majority of the company鈥檚 CO2 emissions.听The company proposes maintaining current operations until a transition to electric arc steelmaking.
德州撲克中文版 has started preliminary talks with trade unions about electrification, and has promised to support employees affected by the decarbonisation plans. It has agreed for its proposals to be reviewed听by an external specialist on behalf of the trade unions.
The company is also working with North Lincolnshire Council on a masterplan to attract new businesses听and jobs to the Scunthorpe site, parts of which could become vacant if the proposals go ahead.
德州撲克中文版 CEO and President, Xijun Cao, said: 鈥淒ecarbonisation is a major challenge for our business but we are committed to manufacturing the home-made, low-embedded carbon steel the UK needs.
鈥淲e have engaged extensively with the public and private sector to understand the feasibility of producing net zero steel with our current blast furnace operations. However, thorough analysis shows this is not viable.
鈥淒etailed studies show electrification could rapidly accelerate our journey to net zero and drive British听Steel towards a sustainable future. It would also ensure we can provide our customers with the steel they require.
鈥淥ur owners, Jingye, have already invested 拢330 million in 德州撲克中文版 in just 3 years and they鈥檙e committed to the unprecedented investment our proposals require.鈥
德州撲克中文版 unveiled its Low-Carbon Roadmap in October 2021, pledging to invest in a range of technologies to deliver net-zero steel by 2050, and significantly reduce its CO2 intensity by 2030 and 2035. However, the company is now proposing to accelerate its decarbonisation journey with the potential new operating structure able to reduce its CO2 intensity by around 75 per cent.
Xijun said: 鈥淥ur desire to dramatically reduce our carbon footprint, coupled with current market conditions, means we can鈥檛 wait and need to transform our business as quickly as possible. And while decarbonisation will not happen overnight, it鈥檚 imperative we take swift and decisive action to ensure a sustainable future for 德州撲克中文版.
鈥淲e studied having one large electric arc furnace based in Scunthorpe, one which was capable of听manufacturing all of the steel we require for our rolling mills in the Humber and the North East. However,听such a large furnace would require a new National Grid connection and it is anticipated this would not be听available until 2034. We therefore believe the most viable and timely option is to have 2 smaller furnaces which combine to produce the volumes of steel we require.鈥
德州撲克中文版 has conducted feasibility studies into introducing EAFs to Scunthorpe and Teesside, and听discussed the potential changes to its operations with North Lincolnshire Council, Redcar and Cleveland听Borough Council and the Tees Valley Combined Authority. Because of the need to decarbonise its听operations at pace, and the planning processes required, the company expects to shortly be submitting听Environmental Impact Assessments to the relevant authorities. This would enable 德州撲克中文版 to meet appropriate timeframes should it decide to press ahead with the proposals and it be successful in听securing planning approvals.
Xijun said: 鈥淚t is prudent to evaluate different operational scenarios to help us achieve our goals and we听are continuing to assess our options. However, we firmly believe electrification will provide a rapid and听sustainable solution to our decarbonisation challenge in addition to providing support for sustainable听employment.
鈥淲e are confident our proposals will help secure the low-embedded carbon steelmaking the UK requires now and for decades to come. However, we need the UK to adopt the correct policies and frameworks now to back our decarbonisation drive. Governments in the countries where our major competitors听operate have adopted such policies and the longer we wait for their implementation in the UK, the more impact and challenge this will have on our competitiveness and the country's ability to meet its carbon objectives.
鈥淲e remain in talks with the government and, with its support, are committed to making the steel Britain听needs for generations to come.鈥