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德州撲克中文版 has 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 needs for generations to come.鈥
Published: 6th November 2023.
At 德州撲克中文版, we're committed to sustainable steelmaking.鈥疭teel is vital to modern economies and over the coming鈥痙ecades, global demand is expected to grow to meet鈥痳ising social and economic welfare needs.听
As the world鈥檚鈥痬ost recycled material, steel plays a central role in鈥痶ransitioning to a low-carbon, circular economy.鈥疪eviewing our processes and investing in new technology鈥痺ill boost our contribution to significant decarbonisation.听
LIFE CYCLE ASSESSMENT听
Steel from the blast furnace route can be easily recycled through the Electric Arc Furnace (EAF) or Basic Oxygen Steelmaking (BOS) route later in its life. In this way a symbiosis between the world鈥檚 2 leading steelmaking routes exists.听
Our Environmental Product Declaration (EPD) for rail, sections and semi-finished long products includes the future benefit of the 100% recyclability of steel in the form of a module D assessment. Downstream uses of the 德州撲克中文版 EPD should use module D when evaluating steel products to reflect the unique properties of steel as a 鈥榤ulti-generational鈥 material and a material fully embedded in circular economy thinking.听
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SUPPORTING YOUR SCOPE 1 EMISSION REDUCTIONS听
Steel is a fast, safe construction material. Steel frames can be manufactured offsite in a safe factory environment. Reducing assembly time on site (7% to 15% less) means lower costs a苍诲鈥痩ess disruption to the local community.听
Steel construction products can help deliver reductions in scope 1 and 2 carbon emissions for the construction sector.听
Through research and development, our innovative S460M structural steel grade can offer a much reduced weight, offering an embedded carbon reduction for your building鈥痯roject.听
There is generally no site waste, but any that occurs can be returned to the steel supply chain and multi-cycled. Due to the strength of steel, buildings can be designed with long鈥痵pans to offer flexible design solutions and extended life.鈥听
PROCESS GASES: REDUCED USE OF NATURAL GAS听
At our Scunthorpe site, we generate process gases as by-products of blast furnace ironmaking and basic oxygen steelmaking. The priority is to maximise the use of process gases as fuel for other combustion processes within the site, such as steel re-heating prior to hot rolling and steam raising. In this way, we can avoid the import of other fuels such as natural gas and propane.听
RECYCLED CONTENT
We use the methodology from the鈥痠nternational standard ISO 14021 to measure鈥痑nd assess the recycled content of our steel鈥痯roducts. Maximising recycled content鈥痙ecreases our scope 1 emissions. At present鈥25% to 30% is the maximum recycled content鈥痑chievable through the BOS route.听
In the table below we present our recycled content figures鈥痜rom 2020 to 2024:听
| 听 | 2020 | 2021 | 2022 | 2023 | 2024 |
| Pre-consumer recycled content | 9.10% | 13.60% | 17.80% | 19.40% | 25.0% |
| Post-consumer recycled content | 16.00% | 11.90% | 5.70% | 0.90% | 0.20% |
| Recycled content according to ISO 14021 | 25.20% | 25.60% | 23.50% | 20.30% | 25.20% |
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RESPONSIBLE SOURCING听
Our customers recognise the benefits of鈥痵ustainable development, both in meeting鈥痝overnment guidelines, and improving social鈥痑nd environmental performance.听
德州撲克中文版 is certified to a good rating for the鈥疎nvironmental and Sustainability鈥疭tandard BES 6001 Responsible Sourcing of Products,鈥痬eaning our customers can be confident they are working鈥痺ith a supplier who is committed to sustainability and that it鈥痠s embedded into our company ethos.听
Through this external validation, customers are able to鈥痓enchmark our performance and demonstrate they are鈥痵ourcing products from a responsible supplier. Designers鈥痑nd developers use our products in the knowledge that鈥痶hey can secure additional credits under sustainability鈥痵chemes, such as BREEAM, BREEAM Infrastructure (previously CEEQUAL) and LEED.听
The certification covers our Teesside, Scunthorpe a苍诲鈥疭kinningrove sites, where we manufacture rail, sections,鈥痺ire rod, special profiles and semi-finished products.鈥听
SUSTAINABLE PRODUCTS: HIGHER STRENGTH AND DURABILITY听
Our dedicated New Product Development鈥痑nd Research & Development teams tailor鈥痶he properties of steel to offer sustainable鈥痵olutions.听
For example, our industry award-winning鈥HP335 rail鈥痙elivers energy-efficient transportation of people a苍诲鈥痝oods. Extended in-service monitoring shows track鈥痩ife can be more than doubled while also reducing鈥痬aintenance requirements. In addition to the safety, cost鈥痑nd environmental benefits, using HP335 means greater鈥痭etwork availability, delivering increased and better service鈥痮n rail networks. Our portfolio of rail products can ensure鈥痶he appropriate grade is utilised in the correct application鈥痶o optimise rail life and performance, hence supporting a鈥痩ower carbon transport network.听
Our customers strive to optimise the life of machinery,鈥痺hile making it safer, more cost-effective and more energy鈥痚fficient. Innovations such as higher strength crane rail鈥offer better durability in service with the potential to use鈥痩ighter sections, reducing installation and transport costs.听
High-strength steel鈥cutting edges a苍诲鈥track shoes also鈥痮ffer extended life and improved durability for the materials鈥痟andling industry.听
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LOCAL SOURCING: REDUCED TRANSPORT EMISSIONS听
By working with us, our customers positively鈥痠nfluence the carbon footprint of their supply鈥痗hain.听
Steel transported within the UK produces 50% less CO2鈥痶han steel sections sourced from the EU. Supply routes can鈥痮ffer total emissions of less than 10kg CO2鈥痯er tonne of鈥痵teel in some cases 鈥 4 times less than steel sourced from鈥痬ainland Europe. The average distance UK manufactured鈥痵teel sections are transported to our customers is less than鈥150km.鈥听
RESOURCE USE AND WASTE MANAGEMENT听
Integrated steelmaking requires large鈥痑mounts of raw materials such as iron ore a苍诲鈥痗oal. It鈥檚 vital that we continue to optimise鈥痮ur consumption of these raw materials鈥痓y minimising waste and ensuring that鈥痮ur by-products meet tight quality control鈥痳equirements so that they can be used in other鈥痠ndustry sectors. As a result of continued鈥痠mprovements in material management,鈥痺ell over 90% of all residue material鈥痯roduced across the site is subject to internal鈥痳ecirculation or external recovery / recycling.听
Our most significant by-product is blast furnace slag.鈥疶his is a valuable raw material for the concrete a苍诲鈥痗onstruction industry, where it is used as a clinker鈥痵ubstitute, thus reducing mineral extraction and CO2鈥痚missions further.听
Steelmaking slag is used extensively in civil engineering鈥痑nd agricultural applications.听
In addition, iron and steelmaking slags sequester鈥痑tmospheric CO2鈥痶hrough natural processes. Even after the鈥痬anufacturing process, our by-products can help to off-set鈥疌O2鈥痚尘颈蝉蝉颈辞苍蝉.听
In line with 德州撲克中文版鈥檚 objective to reduce waste to鈥痩andfill, we鈥檝e enacted a number of waste reduction鈥痵trategies at our Scunthorpe site. Applying the waste鈥痟ierarchy, we encourage re-use of materials such as scale鈥痑nd gas-cleaning residues within site processes.听
A wide range of technologies such as oxide briquettes,鈥痟ydro-cyclones, re-use of oily residues and de-watering鈥痜acilities have been implemented to recover materials back鈥痠nto the process.听
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TRANSPORT IMPACTS听
The impacts associated with the鈥痶ransportation of our raw materials to our鈥痬anufacturing sites, delivery of our products鈥痶o customers, and business travel are relatively鈥痵mall when set against the footprint of our鈥痬anufacturing operations.听
Nevertheless, we have an environmental policy鈥痗ommitment to reduce the environmental impact of鈥痮ur operations and products through the adoption of鈥痵ustainable practices. For this reason, we seek to measure鈥痮ur transport impacts and to progressively reduce them.听
A series of strategies have been developed to deliver this鈥痮bjective, for example:听
Enacting shift from road to rail. Optimise weight of load鈥痺here this is not possible听
Link outward journeys with return legs to minimise鈥痚mpty running rate听
Improve the efficiency of the contracted and subcontracted鈥痟aulage fleet鈥听
WATER USE听
At our Scunthorpe site we鈥檙e currently鈥痑chieving best practice with regards to water鈥痗onsumption at an integrated steelworks鈥痑nd, as such, can be considered to be a steel鈥痠ndustry benchmark in this area.听
Consumption per tonne of steel manufactured is below鈥痶hat associated with the application of best available鈥痶echniques (BAT) according to the EU鈥檚 BAT reference鈥痙ocument for iron and steel.鈥听
GLOSSARY听
BOS:鈥Basic Oxygen Steelmaking involves making steel鈥痶hrough oxidation by injecting oxygen through a lance鈥痑bove a molten mixture of liquid iron and scrap steel听
EAF:鈥an Electric Arc Furnace melts steel scrap using the鈥痟eat generated by a high power electric arc. During the鈥痬elting process, elements are added to achieve the correct鈥痗hemistry and oxygen is blown into the furnace to purify鈥痶he steel听
Module D:鈥an Environmental Product Declaration (EPD)鈥痠s an independently verified and registered document that鈥痗ommunicates transparent and comparable information鈥痑bout the life-cycle environmental impact of products听
Scope 1:鈥疭cope 1 emissions are direct emissions from鈥痮wned or controlled sources鈥听
Scope 2:鈥Scope 2 emissions are indirect emissions from the鈥痝eneration of purchased energy听
Scope 3:鈥Scope 3 emissions are all indirect emissions (not鈥痠ncluded in Scope 2) that occur in the value chain of the鈥痳eporting company听
