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Written Question
Iron and Steel: Manufacturing Industries
Friday 11th June 2021

Asked by: Peter Aldous (Conservative - Waveney)

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 potential merits of allocating funding to hydrogen-based steelmaking to decarbonise the UK steel industry.

Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)

My Rt hon Friend the Prime Minister’s 10 Point Plan was clear on our aim for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy. The forthcoming Hydrogen Strategy will set out what is required to build a hydrogen economy fit for 2030, Carbon Budget 6 and beyond, whilst maximising economic benefits. We will also consult on priority policies, including hydrogen business models, a low carbon hydrogen standard, and the £240m Net Zero Hydrogen Fund.

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.

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 the £240m NetZero Hydrogen Fund.


Written Question
Iron and Steel: Manufacturing Industries
Thursday 10th June 2021

Asked by: Peter Aldous (Conservative - Waveney)

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 planning to take to help the British steel sector 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’.

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 for the steel sector 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.


Written Question
Iron and Steel: Manufacturing Industries
Monday 24th May 2021

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.


Written Question
Iron and Steel: Manufacturing Industries
Friday 21st May 2021

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.


Written Question
Iron and Steel: Manufacturing Industries
Friday 21st May 2021

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.


Written Question
Iron and Steel: Manufacturing Industries
Friday 21st May 2021

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.


Written Question
Iron and Steel: Manufacturing Industries
Friday 21st May 2021

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.


Written Question
Iron and Steel: Manufacturing Industries
Tuesday 27th April 2021

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, whether his Department plans to allocate funding for a pilot trialling hydrogen-based steelmaking in the UK.

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.

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 current Government initiatives include:

  • 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;
  • £22m to the Materials Processing Institute in Teesside to deliver a R&D programme of transformative manufacturing - to help UK steel and metals sector improve efficiencies, cut emissions and ultimately boost its global competitive edge;
  • 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 companies, such as 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.

Written Question
Iron and Steel: Manufacturing Industries
Tuesday 27th April 2021

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 assessment his Department has made of the progress made in (a) Germany, (b) Sweden and (c) China on hydrogen-based steelmaking.

Answered by Nadhim Zahawi

Hydrogen-based steelmaking is one potential way to decarbonise steel production. Decarbonising UK industry is a core part of the government’s ambitious plan for the green industrial revolution and, as part of the UK’s ongoing engagement in key international initiatives focused on industry decarbonisation, 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. This includes engagement under Mission Innovation, the Clean Energy Ministerial, and the Leadership Group for Industry Transition.


Written Question
Iron and Steel: Manufacturing Industries
Tuesday 27th April 2021

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 assessment he has made of the potential merits using hydrogen-based steelmaking to help the (a) British steel industry to decarbonise and (b) UK to meet its target of achieving net-zero carbon emissions by 2050.

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[1], 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’. 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:

  • The first option shows fuel switching to hydrogen and electric arc furnace. This suggests abatement potential from hydrogen fuel switching of 3.9 MtCO2e and 3.5 MtCO2e of electric fuel switching by 2050.
  • The second option shows the abatement potential of carbon capture utilisation and storage (abatement of 6.7 Mt CO2e).

[1] https://www.gov.uk/government/publications/industrial-decarbonisation-strategy