Seen as one of the UK’s highest-profile net-zero energy projects, Net Zero Teesside aims to bring jobs, investment, and industrial capacity to the Teesside region. However, the supplier choice has raised questions over how much value the project will ultimately deliver to the UK economy.
UK Steel Director General Gareth Stace said the decision was unacceptable, stating: “It is unbelievable that BP has chosen Chinese steel over British Steel. For such a major project supported by taxpayers, this decision is extremely disappointing and should never have been allowed.”
The government continues to position steel as a strategic national asset and says it remains committed to supporting domestic industry. UK Steel argues that British steel should be given priority in publicly funded projects.
BP to Face Ministers
Following the backlash, BP is set to appear before ministers on Monday to answer questions over why Chinese steel is being used in a net-zero power plant built with taxpayer support.
Industry Minister Chris McDonald said he would hold urgent talks with BP after a Chinese supplier secured a GBP 5 million contract, adding: “We have made it clear that we expect Net Zero Teesside Power to use British steel wherever possible. This decision is deeply disappointing.”
McDonald noted that the project aims to build the UK’s first gas-fired power plant equipped with carbon capture technology, stressing that the use of British steel is critical for the national economy and employment: “We must maximise the use of UK-made products in projects funded by taxpayers. As a country, we share the goal of growing industry and creating well-paid jobs in our communities.”
BP’s main reason for selecting China’s Modern Heavy Industries is reportedly the company’s ability to produce green steel using electric arc furnaces. Commercial-scale green steel production is not yet available in the UK.
The government said it will continue to support domestic steel production and employment in the steel sector in the period ahead.
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