On December 7, the British Iron and Steel Association pointed out in a report that higher electricity prices than other European countries will have an adverse effect on the low-carbon transition of the British steel industry. Therefore, the association called on the British government to cut its own electricity costs.
The report stated that British steel producers need to pay 61% more electricity bills than their German counterparts, and 51% more electricity bills than their French counterparts.
“In the past year, the electricity tariff gap between the UK and the rest of Europe has almost doubled.” said Gareth Stace, director general of the British Iron and Steel Institute. The steel industry will not be able to invest heavily in new advanced power-intensive equipment, and it will be difficult to achieve a low-carbon transition.”
It is reported that if the coal-fired blast furnace in the UK is converted into hydrogen steelmaking equipment, electricity consumption will increase by 250%; if it is converted into electric arc steelmaking equipment, electricity consumption will increase by 150%. According to the current electricity prices in the UK, operating the hydrogen steelmaking industry in the country will cost nearly 300 million pounds/year (approximately US$398 million/year) more than operating the hydrogen steelmaking industry in Germany.