Asked by: Charlotte Nichols (Labour - Warrington North)
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 met with representatives from industry and campaigners to discuss hydrogen-based steel production.
Answered by Nadhim Zahawi
The BEIS Ministerial team carries out regular engagement with steel and energy stakeholders. For example, 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. At the latest meeting of the Steel Council, on 19 May, UK Steel presented its draft roadmap for how to achieve net zero steel production and the Secretary of State underscored the UK government’s commitment to this work.
The Department for Business, Energy and Industrial Strategy (BEIS) publishes details of ministers’ meetings with external organisations, on a quarterly basis. This can be found here: www.gov.uk/government/collections/beis-ministerial-gifts-hospitality-travel-and-meetings.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of (a) the number of global trials trialling hydrogen-based steelmaking and (b) the potential merits of launching a similar trial in the UK.
Answered by Nadhim Zahawi
The UK is monitoring international progress on low carbon steel making trials, using hydrogen and other technologies, and is actively engaged in international initiatives to support industrial decarbonisation innovation, including the Mission Innovation platform and the Leadership Group for Industry Transition.
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, what recent steps he has taken to support the steel industry in Wales.
Answered by Nadhim Zahawi
The Government is committed to a UK steel industry and a decarbonised future, supporting local economic growth and our levelling-up agenda. That is why the Government has provided over £500 million to the sector in recent years to help with the costs of electricity as well as announced a £250m Clean Steel Fund to support the sector’s transition to lower carbon iron and steel production. Moreover, our unprecedented package of COVID-19 support remains available to protect jobs and ensure that the industry has the right support during this challenging time.
The Government fully recognises the importance of steelmaking in Wales. In July 2020, the Government provided Celsa with a commercial loan, which secured over 1000 jobs, including more than 800 positions at the company’s main sites in South Wales. We also continue to work closely with Tata as it shapes its business strategy to support the future of high-quality steelmaking in Port Talbot.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of international progress on trials of hydrogen-based steelmaking; and if he will take steps to introduce a similar pilot in the UK.
Answered by Nadhim Zahawi
The UK is monitoring international progress on low carbon steel making trials, using hydrogen and other technologies, and is actively engaged in international initiatives to support industrial decarbonisation innovation, including the Mission Innovation platform and the Leadership Group for Industry Transition.
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 government 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’. 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. Hydrogen-based steelmaking is one of the technological approaches being examined as part of this process.
The UK steel sector will be given the opportunity to bid into industrial fuel switching innovation programmes under the £1 billion Net Zero Innovation Portfolio (NZIP), which is intended to promote switching away from more carbon-intensive fuel sources. The Government has also 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.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
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 the creation of green jobs in the UK steel industry.
Answered by Nadhim Zahawi
Levelling up and ensuring high-quality employment across every region of the UK is a key element in the Government’s Plan for Growth. It is estimated that the UK low-carbon economy could grow more than four times faster than the rest of the economy between 2015 and 2030 and support up to 2 million jobs. The Government will ensure that the benefits of our growing low-carbon economy are shared fairly in every region.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the (a) effect on employment levels and (b) costs associated with retaining primary steelmaking capacity at Port Talbot.
Answered by Nadhim Zahawi
The Government recognises the importance of steelmaking at Port Talbot to the supply chains for many key advanced UK manufacturing sectors, as well as for direct and indirect jobs in South Wales.
We are firmly committed to supporting a sustainable, long-term future for steelmaking in the UK. We continue to work closely with Tata, the Welsh Government and trade union representatives as the company shapes its future business strategy for the plant.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
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 plans are to (a) ensure the long-term future of the steel industry in Wales and (b) decarbonise Welsh steelmaking.
Answered by Nadhim Zahawi
The Government recognises the vital role the sector plays in all the areas of the UK and our economy. On 12 March, my noble Friend the Minister for Investment (Lord Grimstone) launched the Steel Procurement Taskforce to explore what government and industry can do to address challenges the sector has reported facing and it is due to report its findings in the autumn.
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 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’.
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.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the ability of the Welsh hydrogen sector to support hydrogen-based steelmaking in Wales.
Answered by Nadhim Zahawi
The Industrial Decarbonisation Strategy, published on 17 March, commits to working 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, CCUS and electrification are some 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 UK Steel sector, including in Wales 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: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what comparative assessment his Department has made of the potential merits of using (a) hydrogen and (b) carbon capture, utilisation and storage to decarbonise steel production at Port Talbot.
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 government 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’.
The UK is engaged in key international initiatives focused on industry decarbonisation and we are engaging with a range of stakeholders in Germany, Sweden and China (as well as other countries) to better understand the latest plans to decarbonise steel production.
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 his Department has to support hydrogen pilots in steel production.
Answered by Nadhim Zahawi
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, CCUS*, and electrification are some 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.
*carbon capture, utilisation and storage