British Steel has secured plans to develop an Electric Arc Furnace (EAF) at its Scunthorpe headquarters.

The company’s application was given the go-ahead by North Lincolnshire Council following a detailed consultation period.

Its application to build another EAF, at its Teesside site, was recently approved by Redcar and Cleveland Borough Council.

The manufacturer's proposed £1.25-billion transformation – its biggest in more than a century of steelmaking – is subject to appropriate support from the UK Government.

British Steel President and CEO Xijun Cao said: "We're extremely pleased to have received planning permissions to build Electric Arc Furnaces at our Scunthorpe and Teesside sites. It is a significant step forward in our journey to net zero and we thank everyone who has supported our plans.

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"The proposed installation of EAFs in Scunthorpe and Teesside is central to our journey to a green future as they would help us reduce emissions of CO2 by more than 75 per cent. However, it is crucial we now secure the backing of the UK Government.

"Our owner, Jingye, is committed to the unprecedented investment decarbonisation requires and our desire to dramatically reduce our carbon footprint, coupled with challenging market conditions, means it is imperative swift and decisive action is taken to ensure a sustainable future for British Steel.

"We are committed to working with the UK Government and need to reach an agreement quickly so we can achieve our ambitious goals, secure thousands of jobs and keep making the steel Britain needs for generations to come."

Significant preparation works, including environmental and technical studies, and equipment selection, are underway to ensure the company’s ambitious proposals can be delivered at the earliest opportunity while discussions with the UK Government continue.

Both proposed EAFs would replace the aging iron and steelmaking operations at British Steel’s Scunthorpe site which are responsible for the vast majority of its CO2 emissions. The company proposes maintaining current operations until a transition to electric arc steelmaking.

British Steel has started preliminary talks with trade unions about electrification, and has promised to support employees affected by its decarbonisation plans.