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Intervention on Scunthorpe Steel Plant – a Step Forward, But CCUS Must Follow

15/04/2025

The Carbon Capture and Storage Association (CCSA) welcomes the Government’s intervention to safeguard British Steel’s Scunthorpe plant, protecting jobs and UK manufacturing. However, the long-term success of UK manufacturing industries hinges on accelerating Carbon Capture, Utilisation, and Storage (CCUS) deployment to decarbonise steel and other foundation industries.

Hard-to-abate sectors, including steel, cement and chemicals account for ~14% of UK emissions. For steel, CCUS offers a viable pathway to retain primary production while cutting emissions. Previous pilots, including British Steel’s collaboration to convert captured CO2 into transport fuels, prove this potential. The Climate Change Committee stresses that 50–60 million tonnes of CO2 must be captured annually by 2035 to meet carbon budgets. Without rapid CCUS progress, the UK risks losing its industrial expertise and capability – a blow to both economy and climate goals.

Statement from Olivia Powis, CCSA CEO:

“The CCSA welcomes the Government’s intervention to secure the future of the steel blast furnace in Scunthorpe, underscoring the vital importance of protecting critical industries and the thousands of jobs they support in the context of the energy transition.”

“This urgent action reinforces the need for clear and timely policy decisions to safeguard industrial sectors across the UK. A competitive and sustainable steel industry must be equipped with the technologies required to deliver affordable, low-carbon domestic production. This equally applies to other foundational industries—such as cement and chemicals—where the rapid deployment of CCUS will play an essential role in preventing the decline of these sectors and unlock substantial growth opportunities for the UK.”

“CCUS is not optional—it is a key technology to preserve the UK’s industrial heartlands and achieve net zero. With the Spending Review approaching, the Government must fast-track CCUS deployment to drive growth, demonstrate climate leadership, and protect livelihoods.”

KeyFacts Energy Industry Directory: CCSA   l   KeyFacts Energy news: Carbon Capture and Storage

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