How much will it cost and how will I pass this on?
Making steel via this route will cost more and subject to the product could be anywhere between £220 and £280 per tonne over and above current 'brown' steel pricing. However, there are 2 ways in which this will be passed on. 1) The customer will specify green steel on the tender and pricing will be comparable to other quoting green steel. 2) There is already a plan to implement a Carbon Border Adjustment Mechanism (CBAM) whereby tariffs will be added to 'brown' steel hence levelling the playing field. With the UK and EU governments driving this change, they will invariably level the playing field by penalising material that will be high in embodied carbon. This is the only way the change will be implemented successfuly as the level of investment by steel mills runs into the billions of pounds/Euros. This could see the abolishment of quotas as tariffs will be applied via the embodied CO2 on steel products.
How can I purchase Green Steel from SPM?
SPM still has allocation available so would welcome the opportunity to discuss this in further detail. WE can help you model what your CO2 reductions would look like and how this can be quantified within the supply chain.
