The Steel Industry

Part of 3. Questions to the Minister for Economy – in the Senedd at 3:08 pm on 31 January 2023.

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Photo of Vaughan Gething Vaughan Gething Labour 3:08, 31 January 2023

There are investment choices being made in Holland—it's not a secret—around hydrogen as an alternative to blast furnace technology there. The challenge is that, if we don't see action taken by the UK Government to engage in that conversation, because they will need to be a partner to make that work, then we would end up importing that steel from other parts of the world. Now, it doesn't mean that the steel sector doesn't exist without blast furnace technology. There's a part of the sector that wouldn't exist, and the challenge then is, could you persuade a future UK Government and future businesses to invest in importing that technology that is proven somewhere else? There's a real risk for us in doing so. I also think it's important for what our ambitions are for steel itself, how we see it as a real capability, and it would make a big difference to workers in the sector. So, we've been really clear and really consistent that we want the UK Government to be part of this. And if it did so, and if you had that major investment made in that alternative technology, it would help with hydrogen use and pipeline, and the incentive to generate green hydrogen—[Inaudible.]—to significant industrial clusters, whether in south or north Wales. So, there should be alternative gains to be made, but that does require a significant UK Government choice.