United Kingdom to seize coal-fired blast furnaces and replace them with green steel technology
After failing to convince Chinese owner of British Steel to transition away from metallurgical coal Starmer government will seize last two blast furnaces in UK
The British government will “take control” of British Steel in an extraordinary one-day Saturday sitting of parliament, Prime Minister Keir Starmer announced Friday, April 11, 2025.
The emergency move comes after British Steel’s Chinese owner Jingye declared its coal-fired blast furnaces to be “no longer financially sustainable” and refused to order any more iron ore or metallurgical coal. Jingye, which bought the plant in Scunthorpe in 2020, said it was losing about US$ 1 million every day making steel from ore and coal.
The government had offered Jingye nearly US$1 billion to convert to electric arc furnaces that can blend scrap with virgin iron to make carbon-free steel but the Chinese owner refused the offer.
From BBC:
“The business department said the new law would give the government the power to "direct the company's board and workforce, ensure they get paid, and order the raw materials to keep the blast furnace running".
It added it would also mean anyone at the plant "who takes steps to keep it running, against the orders of the Chinese ownership" can be reinstated if they are sacked.