Government to spend £390m on clean industrial production

The government is seeking views on delivering a £250m fund to help reduce the iron and steel industry’s carbon emissions, while £140m will be spent on industrial hydrogen systems.

The Department for Business, Energy and Industrial Strategy (BEIS) made the announcement yesterday, touting the prospect of zero-carbon gin being produced in Orkney.

As things stand, ferrous metal production is responsible for 15% of industrial greenhouse gas emissions, while also being a significant source of air pollution. As this is equivalent to 12 million tonnes of CO2 in 2017, mostly from the Port Talbot and Scunthorpe integrated steelworks, the sector forms a notable stumbling block towards meeting net-zero by 2050. But it is also a major employer and key to building vital new infrastructure to meet the same goal.

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