Britain has taken steps aimed at reducing carbon emissions and ending the era of reliance on fossil fuels for power generation that began 142 years ago.
On Monday, Britain announced its intention to close the country’s last coal-fired power plant, as well as the largest traditional steel plant, making it the only G20 member without full domestic steel production on the path to green production.
Britain said it would close the Port Talbot steel plant in South Wales, run by Tata Steel, ending steel production from iron ore after more than 100 years of the industry, amid estimates that thousands of people will lose their jobs at the plant.
The UK’s traditional steel production process made it the eighth-largest country in Europe, with a total of 7 million tonnes, according to government data released in 2019.
In 2021, steel production contributed about £2 billion (about $2.67 billion) to the UK economy and 0.1% of GDP.
Traditional steelmaking is known for using high-temperature blast furnaces, which convert iron ore rocks into liquid, and then into steel.
But what Britain will work on through Tata Steel is to produce iron through electric arc furnaces, with an investment of £1.25 billion (about $1.67 billion), half a billion of which will be covered by the government in the future.
Green steel production based on electric arc furnaces relies on melting scrap or recycled steel, which reduces carbon emissions at the largest rate ever in the sector.
Around 3,000 jobs are expected to be lost at the Port Talbot plant in Wales, but the government has pledged a £12.5m fund to support the steel community and workers. The move will significantly reduce net carbon emissions in Wales, and the UK as a whole, proportionally, something the UK is working towards over the decade to 2030.