British Steel could close coke ovens to cut carbon bill

Scunthorpe-based steelmaker British Steel intends to close its coke ovens to reduce the amount of carbon emissions allowances it has to purchase, sources close to the company told Argus.

The producer could close the facilities as soon as June, after which it would import merchant coke, removing the need to purchase allowances for its coking facilities. The blast furnaces will continue to operate.

One local source said the closure could involve the loss of more than 500 jobs, although news reports suggest as many as 800 could be at risk.

Community Union said it would use "any means at our disposal to fight this dangerous plan".

British Steel has been in talks with the government over support for its decarbonisation drive, although the £300mn it has reportedly been offered is nowhere near enough to replace any of its blast furnaces, let alone all of them.

British Steel has four blast furnaces, known locally as the "four queens", but is only operating two. In recent months the company said it would have to close the furnaces if it did not receive government support.

Sources suggest the closure of the coke ovens could take the company one step closer to importing semi-finished steel to feeds its production, rather than producing pig iron and crude steel.

By Colin Richardson