Global Economy News

UK steel shortage threatens energy projects

According to Tasnim news agency, citing Euronews, the Newton Consulting Group warned in a report that the British government is facing many problems to achieve its goal of producing 50 gigawatts of offshore wind electricity by 2030 unless it increases the country's domestic steel production. .

According to the group, Britain's dependence on foreign steel to make the wind turbines needed for offshore power projects could increase the cost burden and slow the implementation of these projects.

As part of its plan to decarbonize the UK economy, the UK government is currently looking to generate 50 gigawatts of electricity from offshore wind farms by 2030.

To do this, UK steel supply would need to increase by a fifth between 2025 and 2027, the report said.

The group explained that 3.8 million tonnes more steel, equivalent to 23% of the UK's annual steel production, would be needed during this period.

Dan Parker, co-chairman of Newton Consulting, said in the report: “In order to ensure a sustainable supply of steel that can meet projected demand, as the industry strives to reach the 50 GW target, the cooperation of the sector and The British government is essential.

The report comes after steelmaker Tata Steel announced plans to close two coal-fired blast furnaces in Port Talbot, South Wales.

Earlier this year, the company announced that it would replace the current facility with an electric arc furnace that is more compatible with green energy goals. Instead of working from scratch, this furnace makes steel from scrap metal.

As the blast furnaces operate using imported ore and coal, some say the new technology could improve Britain's energy security.

On the other hand, some experts also say that electric arc furnaces will struggle to produce the same capacity as current furnaces, making the UK more dependent on foreign steel.

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Source: Tasnim

Mhd Narayan

Bringing over 8 years of expertise in digital marketing, I serve as a news editor dedicated to delivering compelling and informative content. As a seasoned content creator, my goal is to produce engaging news articles that resonate with diverse audiences.

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