Under the plan, the company would install two EAFs, one each at headquarters in Scunthorpe and the other at its Teesside plant. 

“Decarbonization is a major challenge for our business but we are committed to manufacturing the home-made, low-embedded carbon steel the U.K. needs,” said British Steel chief executive and president, Xijun Cao. 

“Detailed studies show electrification could rapidly accelerate our journey to net zero and drive British Steel towards a sustainable future. It would also ensure we can provide our customers with the steel they require.”

The new furnaces could be operational by late 2025 and would replace the aging iron- and steelmaking operations in Scunthorpe which are responsible for the vast majority of the company’s CO₂ emissions, it said. 

British Steel has started preliminary talks with trade unions about electrification, and has promised to support employees affected by the decarbonization plans. It has agreed for its proposals to be reviewed by an external specialist on behalf of the trade unions.

The move will face pushback from the unions as closing blast furnaces could lead to layoffs of up to 2,000 workers, according to the (London) Financial Times. 

Workers, in fact, are “deeply concerned” by the plan, Roy Rickhuss, general secretary of the Community steel union, told the newspaper. 

“The plans that British Steel has announced, combined with Tata Steel’s plans, would leave the U.K. unable to make steel from raw materials and dangerously exposed to international markets,” he added.