Asked by: Abena Oppong-Asare (Labour - Erith and Thamesmead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he has plans for the Net Zero Strategy to include an assessment of the steps required to decarbonise the UK steel industry.
Answered by Nadhim Zahawi
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. The Industrial Decarbonisation Strategy published on 17 March, commits to work with the Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’.
Hydrogen, electrification, and carbon capture utilisation and storage (CCUS) are the main technological options being examined as part of this process. The industry decarbonisation pathways technical annex of the strategy (pg. 153-155) presents two possible options for the decarbonisation of the iron and steel industry: Our wide-ranging support also includes: providing over £500m in recent years to help with the costs of energy; a £315m Industrial Energy Transformation Fund, which aims to support businesses with high energy use to cut their bills and reduce carbon emission; and our £250m Clean Steel Fund that will support the decarbonisation of the steel sector.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans he has to support the UK Steel industry.
Answered by Nadhim Zahawi
My Rt. Hon. Friend the Secretary of State has reformed and co-chairs the UK Steel Council, an important a forum to work together on transitioning to a competitive, sustainable and low carbon future. My noble Friend the Minister for Investment, Lord Grimstone, has also formed and co-chairs the Steel Procurement Taskforce to help the sector be well placed in competing for and securing public contracts.
Our wide-ranging support also includes: providing over £500m in recent years to help with the costs of energy; a £315m Industrial Energy Transformation Fund, which aims to support businesses with high energy use to cut their bills and reduce carbon emission; and our £250m Clean Steel Fund that will support the decarbonisation of the steel sector. The sector has also had access to our unprecedented package of COVID support, which is still available to the sector to protect jobs and ensure that producers have the right support during this challenging time.
Asked by: Rachel Hopkins (Labour - Luton South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to decarbonise the UK steel industry in the Net Zero Strategy; and what plans his Department has to direct the Clean Steel Fund towards hydrogen-based steelmaking.
Answered by Nadhim Zahawi
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. UK steel plays a critical role in the economy as a foundation industry and the Government remains committed to the UK steel industry and a decarbonised future, supporting local economic growth and our levelling-up agenda. The Industrial Decarbonisation Strategy, published on 17 March, commits to work with the newly constituted Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. Hydrogen-based steelmaking is one of the technological approaches being examined as part of this process.
The Steel Council offers the forum for Government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future. In order to support these efforts, the Government has announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes. The decarbonisation of the steel sector and industry more widely will also be supported through the £1 billion CCUS Infrastructure Fund (CIF) and £240m Net-Zero Hydrogen Fund.
Asked by: Rachel Hopkins (Labour - Luton South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to page 53 of the Climate Change Committee’s report, The Sixth Carbon Budget Manufacturing and construction, what plan he has to set targets for ore-based steelmaking to reach near zero emissions by 2035 as pledged in the Industrial Decarbonisation Strategy.
Answered by Nadhim Zahawi
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. UK steel plays a critical role in the economy as a foundation industry and the Government remains committed to the UK steel industry and a decarbonised future, supporting local economic growth and our levelling-up agenda. The Industrial Decarbonisation Strategy, published on 17 March, commits to work with the newly constituted Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. Hydrogen-based steelmaking is one of the technological approaches being examined as part of this process.
The Steel Council offers the forum for Government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future. In order to support these efforts, the Government has announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes. The decarbonisation of the steel sector and industry more widely will also be supported through the £1 billion CCUS Infrastructure Fund (CIF) and £240m Net-Zero Hydrogen Fund.
Asked by: Rachel Hopkins (Labour - Luton South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to secure the future of primary steelmaking in the UK.
Answered by Nadhim Zahawi
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. UK steel plays a critical role in the economy as a foundation industry and the Government remains committed to the UK steel industry and a decarbonised future, supporting local economic growth and our levelling-up agenda. The Industrial Decarbonisation Strategy, published on 17 March, commits to work with the newly constituted Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. Hydrogen-based steelmaking is one of the technological approaches being examined as part of this process.
The Steel Council offers the forum for Government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future. In order to support these efforts, the Government has announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes. The decarbonisation of the steel sector and industry more widely will also be supported through the £1 billion CCUS Infrastructure Fund (CIF) and £240m Net-Zero Hydrogen Fund.
Asked by: Rachel Hopkins (Labour - Luton South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what his Department’s long-term plan is to support jobs in the UK steel industry; and whether he has made an assessment of the potential merits of hydrogen-based steelmaking to decarbonise the sector.
Answered by Nadhim Zahawi
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. UK steel plays a critical role in the economy as a foundation industry and the Government remains committed to the UK steel industry and a decarbonised future, supporting local economic growth and our levelling-up agenda. The Industrial Decarbonisation Strategy, published on 17 March, commits to work with the newly constituted Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. Hydrogen-based steelmaking is one of the technological approaches being examined as part of this process.
The Steel Council offers the forum for Government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future. In order to support these efforts, the Government has announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes. The decarbonisation of the steel sector and industry more widely will also be supported through the £1 billion CCUS Infrastructure Fund (CIF) and £240m Net-Zero Hydrogen Fund.
Asked by: Ruth Jones (Labour - Newport West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will ringfence levies paid by the steel sector into the EU Research Fund for Coal and Steel and returned from the EU to the public purse for the establishment of a steel innovation fund.
Answered by Nadhim Zahawi
At last year’s Spending Review, we set out plans for Government spending for 2021/22, to prioritise the Government’s response to Covid-19, and our focus on supporting jobs.
The Government recognises the importance of research and innovation in helping to transform the steel sector so that it can play a vital role in developing the UK’s economy. Our on-going support to the sector includes announcing £22m to the Materials Processing Institute in Teesside to deliver a R&D programme of transformative manufacturing, announcing a £250m Clean Steel Fund that to support the transition of the steel sector to new low carbon technologies, providing up to £66m through the Industrial Strategy Challenge Fund to help steel and other foundation industries develop radical new technologies and establish innovation centres of excellence in these sectors, and the £315m Industrial Energy Transformation Fund which supports the development and deployment of technologies to transition to a low carbon future.
Asked by: Mick Whitley (Labour - Birkenhead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to help the British steel industry to decarbonise.
Answered by Nadhim Zahawi
Decarbonising UK industry is a core part of the government’s ambitious plan for the green industrial revolution.
The Industrial Decarbonisation Strategy published on 17 March, commits to work with the Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’.
Our recent and on-going work to support the steel sector includes:
o Announcing the £250m Clean Steel Fund to support the decarbonisation of the steel sector, including its transition to new low carbon technologies and processes.
o The Industrial Energy Transformation Fund. This £315m fund aims to support businesses, including those in the steel sector, with high energy use to cut their bills and reduce carbon emissions.
o The newly re-constituted Steel Council offers the forum for government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the Industrial Decarbonisation Strategy, what steps his Department is taking to support demonstration trials of hydrogen-based steelmaking as part of the commitment to near-zero steelmaking by 2035.
Answered by Nadhim Zahawi
The Government recognises the importance of research and development in helping to transform the steel sector so that it can play a vital role in developing a cleaner, greener economy in the UK.
The Government has announced the £250m Clean Steel Fund to help the sector transition to lower carbon iron and steel production, and this could potentially include supporting hydrogen-based steelmaking. It is also providing up to £66m as part of the Industrial Strategy Challenge Fund, to help key foundation industries, such as steel, develop innovative technology to reduce energy and resource use.
The Government also plans to establish a Net Zero Hydrogen Fund (previously Low Carbon Hydrogen Production Fund): with £240m of capital co-investment out to 2024/25. This will support at-scale hydrogen production projects, allowing steel producers the potential to access to secure supplies of lower cost hydrogen.
More broadly the £1bn Net Zero Innovation Portfolio provides funding for low carbon technologies and systems to support decarbonising our power, homes and industry as set out in the Ten Point Plan for a Green Industrial Revolution.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to ensure the £200 million from the EU Research Fund for Coal and Steel is used in support of steel sector innovation.
Answered by Nadhim Zahawi
The Government recognises the importance of research and innovation in helping to transform the steel sector so that it can play a vital role in developing the UK’s economy. We have taken a number of steps to facilitate innovation in steel making in the UK, including;
Firstly, providing up to £66m through the Industrial Strategy Challenge Fund to help steel and other foundation industries develop radical new technologies and establish innovation centres of excellence in these sectors.
Secondly, establishing a £250m Clean Steel Fund that will support the decarbonisation of the steel sector, supporting its transition to new low carbon technologies and processes. The Government also plans to establish a Net Zero Hydrogen Fund (previously Low Carbon Hydrogen Production Fund): with £240m of capital co-investment out to 2024/25. This will support at-scale production from both Carbon Capture Usage and Storage (CCUS) enabled (‘blue’) hydrogen and electrolytic (‘green’) hydrogen projects.
Finally, as part of the Spring 2020 Budget, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced £22m (subject to a business case) for the Materials Processing Institute in Teesside to deliver a R&D programme of transformation manufacturing - to help UK steel and metals sector improve efficiencies, slash emissions and ultimately boost global competitive edge.