President's Column September 2024

President's Column September 2024

08/09/2024

Category: President's Column

Steelwork sector can help generate Government's clean energy aspirations

We emerge from our short summer break with a new Government in place who have promised to bring an end to 'sticking plaster politics' and meet the long-term challenges that the country faces. But is this just more political rhetoric, or can we now rely on a government that really understands how UK industry works and what is needed to maintain a strong and stable construction sector?

Labour's election-winning manifesto, contains a fivemission plan that inevitably embraces important issues such as NHS reform, education and law & order, but it also includes aspirations for economic growth and a promise to make Britain a clean energy superpower. Both of these targets will depend on, and also directly affect our constructional steelwork businesses and the wider supply chain.

If they are true to their word, the new government should engage with the industry to help educate and steer them in the right direction across a wide variety of important matters that only those involved on a day-today basis fully understand.

Of course, the steelwork industry will be just one of many trying to get a seat at the table. So, I believe that in order to be heard, we need to consider joining forces with other institutions and trade associations who have similar views and opinions to create a voice that fully represents one of the UK's largest contributors to its national economy, and therefore one that the government cannot afford to exclude.

The manifesto promise, to make Britain a clean energy superpower, entails the creation of a publicly-owned company called Great British Energy (GBE). The purpose of this newly-formed company is to generate investment and maintain progress in clean and renewable energy projects to entirely remove fossil fuels from the UK electricity grid by 2030, which is five years earlier than the previous government plan.

Despite the many challenges in delivering this goal, the intention has to be taken as an extremely positive announcement by those within our membership who are involved in steel production, solar energy, wind turbines, nuclear projects, and other clean energy initiatives.

Let's hope that the government already understands that one of the biggest (and under-appreciated) obstacles in terms of hitting this target is the upgrading of the UK's electricity grid network. Are they aware that due to the lack of capacity in the grid, existing wind farms in Scotland are forced to shut down on windy days? Do they realise that a major increase in grid capacity is needed to maximise the contribution of the Electric Arc Furnaces planned by British Steel and Tata?

Despite the challenges, the new government appear to be confident that GBE will get these clean-energy projects over the line, including a significant contribution from new nuclear energy at Hinkley Point C and the upcoming Sizewell C project. It is also planning to unlock the potential of Small Modular Reactors (SMRs) to emulate the French model and become a net exporter of electricity that returns an annual revenue of around €3bn. However, it will take some time to increase our present total of 9 reactors to match the 56 currently in operation across the Channel.

Whatever your political persuasions, we now have a government in office who say that they are prepared to listen and act in the interests of national industry. So, let's make sure that they hear the specific needs of the constructional steelwork industry loud and clear.

Gary Simmons, BCSA President

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