British Steel seeks buy-in on EAF conversion

British Steel, the United Kingdom operations of China-based Jingye Group, is preparing to meet with constituents in the U.K. cities in which it operates to provide details of its proposed switch away from using blast furnace/basic oxygen furnace (BOF) technology to scrap-fed electric arc furnace (EAF) technology.

The plans are subject to appropriate support from the U.K. government, and British Steel says it intends to become a “clean, green and sustainable business” by adopting EAF technology

In the case of British Steel and Tata Steel UK, as the companies have announced their plans to convert from BOF to less labor-intense EAF technology, the prospect of resistance from trade unions becoming barriers to both transitions is possible.

A conversion in the U.K. from BOF to EAF technology seems inevitable and logical. The scrap-surplus nation currently makes just 19 percent of its steel with EAF technology, according to one recent analysis, putting it well-behind the European Union (43 percent) and even further behind the United States (69 percent).

In the case of British Steel, its plans call for installing two EAFs, one in its headquarters city of Scunthorpe, England, and the second at its mill site in Teesside, England. The company proposes maintaining its blast furnace/BOF operations until its transition to EAF technology is complete.

The new furnaces could be operational by late 2025 if British Steel can adhere to a prompt timetable, the firm says. The EAF technology will replace the company's “aging iron and steelmaking operations in Scunthorpe,” which it says are responsible for the vast majority of its CO₂ emissions.

British Steel will stage four events this December—two each in Scunthorpe and Teesside—for people seeking more information about its plans.

“We have already engaged extensively with the public and private sectors to understand the feasibility of producing net zero steel with our current blast furnace operations,” British Steel CEO and President Cao Xijun says. “Thorough analysis shows this is not viable which is why we are proposing to transform our operations so we can make the net zero steel the UK will need for decades to come.

“We’d now like to consult with the people living in our communities about our proposals to adopt a clean and sustainable way of making steel. At the events, people will have the chance to see our plans in greater detail and ask questions about the planning implications for our proposals.

“Feedback from the events will be used to shape any future  planning applications we may make.”

British Steel first announced its Low-Carbon Roadmap in October 2021. The company is now proposing to accelerate its decarbonization plan, which it says has the potential to reduce its CO₂ intensity by more than 75 percent.

“Our desire to dramatically reduce our carbon footprint, coupled with current market conditions, means we can’t wait and need to transform our business as quickly as possible,” Cao says. “And while decarbonization will not happen overnight, it’s imperative we take swift and decisive action to ensure a sustainable future for British Steel.”

Cao says British Steel and Jingye Group had considered having one large EAF-based melt shop in Scunthorpe that was capable of manufacturing all of the steel required for its rolling mills in other parts of the U.K. However, such a large furnace would require a new National Grid connection, and it is anticipated this would not be available until 2034.

"We therefore believe the most viable and timely option is to have two smaller furnaces [that] combine to produce the volumes of steel we require," Cao adds.

British Steel says it already has discussed the potential changes to its operations with regional government agencies near Scunthorpe and Teesside and has submitted an Environmental Impact Assessment Scoping Request to one local council.

The firm also says it has started preliminary talks with trade unions about electrification and has promised to “support employees affected by the decarbonization plans, [and it] has agreed for its proposals to be reviewed  by an external specialist on behalf of the trade unions.”

Finally, British Steel says it is working with North Lincolnshire Council on a “master plan to attract new businesses and jobs to the Scunthorpe site, parts of which could become vacant if the proposals go ahead.”