Report: Unlocking the First Wave of Breakthrough Steel Investments in the United Kingdom
A rapid scale-up in near-zero emissions primary steelmaking is critical for decarbonising steel. Growing demand for steel and inherent limits to the future supply of scrap steel available for recycling means that as much as 60% of global demand in 2050 may still need to be met by primary (ore-based) steel production. Decarbonising primary production represents an essential lever for achieving a net-zero emissions steel sector. Expanding the pipeline of commercial-scale, near-zero emissions primary projects and progressing them to final investment decisions (FIDs) in the next five years becomes the critical task for putting the global industry on a 1.5°C-aligned pathway. In the United Kingdom, effective carbon pricing on domestic production and steel imports, lower costs associated with sourcing and processing scrap steel, a market for differentiated low-carbon steel and guarantees to de-risk novel technologies could establish an investment case.
Authors: Alasdair Graham, Marc Farre Moutinho, Min Guan, Rafal Malinowski, Stephannie Lins, and Jeroen Huisman
