Business Secretary Peter Kyle has expressed support for transitioning to electric arc furnace technology at the state-controlled British Steel plant. This shift poses implications for the future of the UK’s last remaining blast furnaces as the government aims to publish a new steel strategy by December.
The introduction of electric arc furnaces at the Scunthorpe facility in Lincolnshire could secure the plant’s steel production and assist the UK in achieving its net zero carbon emissions target. However, this transition raises concerns about the fate of existing blast furnaces, which provide employment for thousands, and could contradict governmental commitments to maintain Britain’s primary steelmaking capability that relies on iron ore.
In April, the British government took control of British Steel after concerns that its owner, Jingye Steel, might permanently close the site, risking approximately 2,700 jobs. Currently, there are no detailed plans for the future of Scunthorpe. While the government had allocated £2.5 billion for the steel industry in its electoral manifesto, much of this funding has already been used to sustain operations at both British Steel and Liberty Steel, which underwent insolvency earlier this year.
Kyle noted that the global steel industry is facing various challenges, including tariffs and oversupply issues, influencing the government’s strategy. He affirmed his belief in the feasibility of implementing electric arc furnaces in Scunthorpe, promising more comprehensive details in the upcoming steel strategy.
Concerns remain regarding the potential reduction of the UK’s ability to produce virgin steel through blast furnaces. Industry representatives have indicated the importance of maintaining primary steelmaking capacity while exploring methods to reduce carbon emissions. The government is considering investing in a facility for direct reduced iron production, which could support electric arc furnaces and be produced with lower carbon emissions, though its financial viability remains uncertain.
Source: https://www.theguardian.com/business/2025/nov/16/peter-kyle-backs-electric-arc-furnaces-british-steel-scunthorpe