Fury as Ed Miliband’s £4bn Net Zero project could use Chinese steel
Construction of the ‘world’s first gas-fired power station with carbon capture’ on Teesside could involve tons of Chinese steel, it is feared.
The £4 billion project at the former Redcar steelworks will use taxpayers’ money from Ed Miliband’s Department for Energy Security and Net Zero.
But industry leaders are furious that the steel it requires could come from China rather than struggling UK suppliers.
Net Zero Teesside (NZT) is owned by a consortium led by BP, which plans to generate electricity to power 1.3 million homes. But it has admitted that nearly half the raw materials needed to build the power plant could come from abroad.
Man with a plan: The £4 billion project at the former Redcar steelworks will use taxpayers’ money from Ed Miliband’s Department for Energy Security and Net Zero
Trade body UK Steel said 10,000 tons of steel is likely to come from a Chinese supplier to NZT, adding: ‘It is disappointing to see publicly funded projects of this scale still defaulting to overseas supply.’
Steel boss Sir Andrew Cook added: ‘It is in our national interest to exclude Chinese steel from such projects. Where British taxpayers’ money is helping the funding, the case is overwhelming.’
The power station is expected to start production in 2028, with carbon dioxide captured and sent via pipelines to storage beneath the North Sea.
NZT Power declined to comment on ‘ongoing competitive procurement activity’.
The government said a contract has been agreed for UK-made steel to help build the carbon capture element of the project, known as the Northern Endurance Partnership.
A government spokesperson said: ‘Alongside Great British Energy, The Crown Estate and industry, we are reigniting our industrial heartlands, supporting UK steel, and investing £1 billion in domestic supply chains.
‘The carbon capture sector has a voluntary ambition to reach 50% UK content by 2030, and contracts have already been awarded to UK steel firms for the Northern Endurance Partnership, which will store CO2 from Net Zero Teesside.’
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