For some numbers on the factors making UK steel more or less competitive, see this report from EUROFER (from 2020, but mostly still holds). High raw material and labour costs are the main reasons why UK production costs are towards the higher end, with CO2 costs ~2%.

www.eurofer.eu/assets/news/...

The fact is that the BFs at Scunthorpe only have a very short remaining lifetime under any ownership but providing stability and security of production during a transition to alternative production is preferable. This is not a commitment to fossil-based steel but to an orderly transition.

Jonathon Reynolds repeatedly committed to the modernisation and decarbonisation of future steelmaking in Parliament yday. This did not look like a backing away from NZ, as this piece claims, but a firm restatement from a member of cabinet other than Miliband.

The main climate policy set to impact industries in the UK (and Europe) is the Emissions Trading System (ETS) but these facilities still receive a free allocation of emission certificates, so pay no cost today.

Whilst climate policies (through higher electricity prices) will have a bigger impact on EAFs, and even that is mostly the result of high gas prices, the impact on BFs will be low as they use relatively little electricity.

Oof. That’s ‘world-beating’ alright. Can you share a v rough cost breakdown beyond the tube trailer?

With this news from China, is there new cause for optimism in countries and companies agreeing on a common definition, which can underpin trade deals, cross-border investment and limit the growth of new dirty capacity?

This was the same issue that the US and the EU were fighting over under the Global Arrangement on Sustainable Steel and Aluminium, or GASSA. Talks ultimately broke down over different approaches to measuring emissions and defining green steel, as well as level of market access.

This represents a major step towards convergence on green steel standards, with the world’s largest national steel association now supporting an approach adopted by several other organisations. A great explainer from the IEA on how this came about.
www.iea.org/commentaries...

In late Nov, the China Iron and Steel Association (CISA) launched its own ‘Low Carbon Embodied Emissions Steel’. This is based on the ‘sliding scale’ framework initially proposed by the IEA, and supported by the G7, in 2021.

Interesting, wasn’t aware. Let’s hope so!

What are the links between Northvolt and Stegra?