UK electricity prices hamper steel industry’s efforts to cut emissions – report | The powerful 790 KFGO

LONDON (Reuters) – Higher electricity prices in Britain than in other European countries will weigh on the steel industry’s efforts to cut carbon emissions, an industry group said on Tuesday in a report calling for network cost reductions.

UK steel producers pay 61% more for electricity than their German competitors and 51% more than in France, the UK Steel trade association said in a report.

The global steel industry is one of the world’s largest emitters of CO2, accounting for 11% of emissions, according to the Global Energy Monitor.

Among other recommendations, the UK Steel Report says the UK government should implement power grid cost reductions similar to those in Germany and France to help industry reduce its impact on CO2.

“Over the past year, the gap between electricity prices paid by UK and EU steelmakers has almost doubled,” said Gareth Stace, group chief executive.

“The sector will find it difficult to decarbonize, by investing in new energy-intensive equipment, if electricity prices in the UK remain well above those of our competitors.”

Converting UK coal-fired blast furnaces to a hydrogen-based steel industry could increase electricity use by 250%, while their conversion to electric arc methods would increase it by 150%, according to the report.

At current electricity prices, it would cost nearly 300 million pounds ($ 398 million) more per year to run a hydrogen-based steel industry in Britain than in Germany.

($ 1 = 0.7544 lb)

(Reporting by Eric Onstad; Editing by Alexander Smith)

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