UK Government Discloses Its Plans For £250 Million Clean Steel Fund

UK Government Discloses Its Plans For £250 Million Clean Steel Fund

September 04th 2019

With the Clean Steel Fund closing about £250 million, the UK government recently unveils its plans for the money. The additional call also requests for supporting evidence and assistance for the plan’s ambitions, applications, and development.

The UK government recently unveils its plans for the £250 million Clean Steel Fund in a press declaration. The UK government announced on the 29th of August the addition of the Clean Steel Fund would provide the much-needed support into UK’s steel industry. The steel industry in the UK is set to make its transition to lower carbon iron and steel manufacture. The new development also seeks to make the best use of the weakening sector’s permanency to promote growth and build skills.

The UK government remains keen on placing the sector on track in attaining the net-zero emissions specified by the UK Climate Change Act. In line with this move, the process would also lay the foundations for sustainability amongst steel producers. In the released statement, another extra point is the addition of the establishment of a £100 million Low Carbon Hydrogen Production Fund. The fund is to enable the expansion of low carbon hydrogen production, which could serve as a possible approach to lowering carbon steel production.

Nevertheless, fears surrounding production in the UK’s steel industry witnessed a notable rise over the last few years. Particularly in May 2019 when British Steel commenced a liquidation process that has prompted the government into taking over control of its operations while EY, Special Manager for the process, search for a buyer. 

Business Secretary, Andrea Leadsom on the 22nd of August published an article concerning Turkey’s biggest flat steel manufacturer, Ataer. In the article, Ataer (also Erdermir largest shareholder), has been nominated as the preferred buyer. This move signals imminent stability for the over 4,500 UK-based British Steel workforces.

Andrea Leadsom also went further by adding Ataer, who noticeably enjoyed Erdermir success, will place more attention into increasing production. And more investment in clean steel production once the purchase transfer is complete.