UK steel sector needs to educate partners for a sustainable future

Steel fabricators and producers in the UK have been reducing their carbon output for decades in order to stay lean and efficient. This has been primarily through the adoption of more sustainable business practices, including an increase in scrap contents used within the basic oxygen furnace (BOF), meaning that the amount of carbon generated during steel production has naturally declined.

At the same time, clients have been adopting innovative strategies to reduce the operational energy of their buildings. Reports including the 2018 UKGBC’s Net Zero Whole Life Carbon Roadmap suggest that 71% of the UK built environment’s carbon footprint comes from operational emissions. Since then, it has also become clear that similar efforts are required to reduce the embodied carbon associated with developments – and this has become the prevailing trend.

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However, this focus on carbon at a project level does not always capture the nuances of global carbon reduction strategies and is placing significant pressure on UK steel suppliers as they transition to greener production methods.

That is because, although the client focus on embodied carbon at a project level is commendable, it inadvertently dictates certain procurement routes with a preference for electric arc furnace (EAF) steel from Europe. This preference means BOF steel, which is typically produced in the UK, is often overlooked because BOF furnaces produce higher carbon emissions per tonne of steel.

Some clients will argue that this focus on a project level has helped to stimulate a transition to low carbon solutions as UK BOF suppliers have needed to commit to a net zero pathway in reaction to market stimulation. That is true – and UK steel companies have responded!

Those of us in the industry need to work hard with our partners to share knowledge on how to make the most sustainable choices for the long term, which in turn will support our domestic steel sector

Tata Steel UK’s plans to transition to EAF production is an example, as were the original plans to support British Steel in building a new EAF in Scunthorpe. The industry is waiting to see whether British Steel will choose a similar EAF option to that pursued by Tata or an alternative solution that would preserve more jobs in the area.

This still means that the UK will have low-carbon products to rival offshore suppliers by 2028-30. However, this also means that the transition period between now and then becomes extremely important for UK steel.

In this interim period, those of us in the industry need to work hard with our partners to share knowledge on how to make the most sustainable choices for the long term, which in turn will support our domestic steel sector.

One of the big reasons is that sustainability is not just about carbon. Ignoring UK suppliers has regional social consequences, including the potential closure of UK steel facilities.

If they are not supported through this transition period, with EAF infrastructure costing around £2bn per furnace, they won’t be able to attract the investment to make it happen. The result will not simply be a lack of a UK low carbon steel sector, but no UK steel production sector at all, meaning a larger portion of it will need to travel from offshore.

With the market stimulated and UK suppliers committed to their net zero strategies, we need collectively to reduce the amount of materials we use to truly affect global carbon consumption. Using less steel therefore becomes the priority while the supply chain transitions.

This philosophy favours the refurbishment and extension of existing building stock over demolition and rebuild, ensuring embedded carbon is not wasted. This presents two opportunities for the steel sector.

When to re-use steel, when to specify high-strength materials and how to minimise costs associated with stitching new structures to existing ones are all things the supply chain can give a pragmatic view on

The first is to play our role in the design of new schemes and structural elements, ensuring lean design principles are complemented by appropriate material specification, and secondly to promote retention, refurbishment and reuse of steel where possible.

Early engagement with fabricators and producers ensures industry expertise can complement the innovative designs being produced by the client teams. When to re-use steel, when to specify high-strength materials and how to minimise costs associated with stitching new structures to existing ones are all things the supply chain can give a pragmatic view on to ensure the carbon benefits associated with these initiatives can be baked into the projects.

For example, where partial or full demolition is required, we need to encourage clients to reuse that stock into the circular economy. This could be by demonstrating how it can be put back into their new building or, critically, back into the broader economy for use by others, something not currently enthusiastically embraced by the sector.

Finally, we need to demonstrate how steel can be used successfully with alternative materials that complement its circular attributes but produce less carbon in production. Using timber alongside steel in the likes of timber floor cassettes in hybrid structures is one such alternative which produces less carbon for an equally effective product solution.

If we can successfully achieve this last point, we can drive greater innovation in more blended solutions that embrace all parts of the supply chain and make a greater contribution to meeting net zero targets. In doing so we will give clients the best solution that considers both global and local decarbonisation goals.

The UK steel sector needs to demonstrate that we have the right expertise and product solutions to be a viable choice

Ultimately there is no silver bullet to decarbonisation. It is going to take considerable collaboration between the UK construction sector, steel fabricators and producers to create a sustainable future for a low carbon steel sector in this country.

In order to achieve a managed transition, there needs to be a long-term view on reducing carbon as part of the procurement process, but the UK steel sector needs to  demonstrate that we have the right expertise and product solutions to be a viable choice.

If we succeed, the result will be a sustainable, home-grown steel sector which will naturally be lower in carbon for UK-based projects. And if we don’t, we will need to buy from Europe and beyond which will see further major UK infrastructure projects completed without the inclusion of a homegrown product.