Primary Steelmaking “Pledge” Under Threat by New EAF Plan

A previous government pledge to preserve the UK’s “primary steelmaking” capability is under direct threat from a new plan championed by Business Secretary Peter Kyle. His backing for electric arc furnaces (EAFs) at Scunthorpe would mean replacing the very blast furnaces needed to produce virgin steel from iron ore.
This marks a significant shift in policy. When the government, led by Kyle’s predecessor Jonathan Reynolds, recalled parliament to take control of British Steel in April, the explicit goal was to “preserve ‘primary steelmaking’.” Now, the priority appears to have shifted to decarbonisation.
Kyle, who is finalising a new steel strategy, is “keen to see that transition happen.” The new EAFs would use electricity to melt scrap steel, a much greener process that aligns with net-zero targets and would secure the plant’s future.
Unions are warning the government not to abandon its earlier promise. The Community union’s assistant general secretary insisted that any plan must “maintain primary steelmaking capacity here in the UK,” viewing it as a critical national asset.
A potential, though financially questionable, compromise is being considered: a new facility to produce Direct Reduced Iron (DRI) using green hydrogen. This DRI could then be fed into the EAFs. However, with the government’s £2.5bn steel fund already partially spent on bailouts, the viability of this expensive add-on is uncertain.