Latest Industry News: Edition 44

The Drive Towards Net Zero Steel

Steel, the world’s most notable engineering and construction material, has significant implications on the environment, as it contributes to around 10% of global emissions.

The alloy, made from a combination of iron, carbon, and other elements, is used everywhere, and is one of the world’s largest contributors to pollution.

ResponsibleSteel is an initiative that was established in 2015, with the aim of achieving a greener future for the steel industry. The multi-stakeholder has developed a certification programme and independent standards for steel that adheres to the ISEAL Codes of Good Practice, establishing the global standard for sustainable net zero steel production.

Known as ‘green steel,’ this term refers to manufacturing processes that utilise renewable energy and advanced technologies to reduce carbon emissions, thereby promoting greater environmental sustainability in the industry.

Alongside this, circular steel focuses on using recycled steel scrap, which significantly reduces the need for extracting primary steelmaking materials from the earth. This approach leads to an immediate positive impact on Scope 3 (indirect) emissions.

UK Leads the Way in Green Energy Generation

August 2024 marked the UK’s lowest fossil fuel electricity generation yet, with an average below 5GW. The country also leads the G7 nations in decarbonisation, as stated by a recent Drax Electric Insights report.

The G7 nations, seven of the world’s most advanced economies, are an intergovernmental political and economic forum. As the UK takes the lead in reducing emissions and transitioning to cleaner energy, this highlights the significance of the UK’s leadership in decarbonisation.

However, the report also emphasises challenges such as phasing out natural gas, enhancing grid infrastructure, and managing the increasing costs of system balancing. In order to meet the government’s goal of a net zero power grid by 2030, the generation of gas needs to reduce from 25% to 5% over the course of six years.

To support the transition to more sustainable energy systems, there will therefore need to be a greater dependence on wind, solar, long-duration energy storage, and reliable thermal power.

UK Faces Gas Shortages in Early Winter Months

International energy and services company Centrica has cautioned about the natural gas shortages expected to hit the UK in the early winter months. These shortages, due to a combination of early cold weather and low wind power, are expected to disrupt power output, affecting homes, businesses, and travel.

The Rough gas storage site, responsible for around half of the UK's gas storage capacity, is experiencing low stock levels due to increased demand. The situation is worsened by the impact of the Ukraine conflict, which disrupted European gas supplies, making the UK more vulnerable.

Centrica has already pumped 4.35 billion cubic feet of gas into the system, powering up to 3.8 million homes on certain days. On November 5, 2024, Rough also reached a record fill level, the highest since its reopening in 2022.

Subsea Cable Set to Transmit Electricity from Morocco to Great Britain

There are ambitious plans for Great Britain to receive electricity from renewable energy projects in Morocco. A 4,000km subsea cable, an electric cable laid along the seabed, is proposed to deliver up to 8% of Britain’s electricity demand.

If constructed, this cable would transport power from renewable energy and battery facilities in Morocco’s Tantan province to the Devon coast in under a second.

Morocco, renowned for its sunshine and strong trade winds, has become a leader in renewable energy over the past decade. Its solar farms and wind projects are capable of generating significant power, which could provide green electricity to more than 9 million British homes, serving as a predictable and reliable energy source, particularly valuable during periods of low wind and sunlight in the UK.

The project aims to take advantage of Morocco’s long sun hours and consistent trade winds to deliver a steady and adaptable supply of zero-carbon electricity to the UK, helping to offset drops in domestic renewable energy generation due to seasonal or weather-related fluctuations.

Nuclear Plants Set to Continue: Renewable Growth and Energy Stability

EDF (Électricité de France) has revealed that they will be postponing plans to demolish four of the UK’s oldest nuclear power plants with the aim of enhancing domestic energy security.

The nuclear plants that will continue running include Heysham 2 (Lancashire) and Torness (East Lothian), which will continue until March 2030, and Heysham 1 (Lancashire) and Hartlepool (Teesside) set to continue producing power until March 2027.

The four power stations provide jobs for around 3,000 people and can produce as much as 4.6GW of electricity, enough to power approximately 4.5 million homes.

The decision to extend the lifecycles of these plants comes as EDF strives to effectively support the transition to renewable energy while ensuring grid reliability and reducing dependence on external energy sources.

The National Energy Systems Operator has supported the decision, highlighting nuclear as crucial in ensuring a stable and reliable energy supply for the UK through 2030 and the addition of new capacity by 2050.

Reduced Rates for Green Energy: Reduced Rates for Bill Payers

The New Economics Foundation (NEF) has proposed a significant opportunity for the UK to reduce electricity costs and lower household bills by reducing interest rates for clean energy investments.

NEF highlights that if the Bank of England (BoE) decreases interest rates for renewables and grid upgrades by 2.5%, this has the potential to decrease the cost of electricity and reduce bills.

By encouraging investment in clean energy, this policy would help shift the UK away from expensive fossil fuels, which are a major contributor to inflation. NEF estimates that this decrease could save the electricity system £29 billion from 2026 to 2045, reducing bills by £24 per household per year by 2030.

This approach helps reduce inflation caused by rising fossil fuel prices while also delivering long-term savings, benefiting both consumers and the environment.

Subscribe and follow to keep up with the latest industry news and innovation within the renewable and sustainable sector.