Protecting Steel in the UK Debate

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Department: Cabinet Office
Tuesday 23rd January 2024

(3 months ago)

Commons Chamber
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David T C Davies Portrait David T. C. Davies
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I think I had better keep going because I have one minute left.

On defence, none of the steel being produced in Port Talbot is going into the defence industry. The defence industry uses steel from Sheffield Forgemasters, which is created by an electric arc furnace. There is an issue, historically, with the quality of the steel that comes out of an arc furnace, but all the experts have told me that it is getting better and better all the time. Tata expects an electric arc furnace to be able to supply about 90% of the products that it currently supplies through the blast furnace.

Exciting technology is being developed that uses hydrogen instead of coal or coke to reduce iron, but there is only one plant doing it, at Luleå in Sweden. It is completely experimental at the moment. There is a podcast on the BBC in which the chief executive being interviewed makes it clear that it is 25% more expensive than the steel produced in a convention blast furnace. So good luck trying to persuade Tata that it should get rid of producing steel in the usual fashion and replace it with something that is 25% more expensive. The reality is—

David T C Davies Portrait David T. C. Davies
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I know my time is up, but the plan that Labour Members have waved around has not been put to Tata by the Labour party.

Alan Campbell Portrait Sir Alan Campbell
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claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Main Question accordingly put.