Month: April 2025

The UK government is facing increasing pressure to intervene in the future of British Steel, with concerns growing that the company’s two blast furnaces in Scunthorpe could soon be forced to shut down due to a critical shortage of raw materials

The BBC reported that as fears mount, ministers are considering nationalisation as a potential solution that could protect thousands of jobs and secure the country’s steel production.

UK steel production at risk of stopping

The steelworks in Scunthorpe, which employ around 2,700 people, are at risk of stopping production within days unless fresh orders for iron ore and other materials are secured.

British Steel, which has been owned by the Chinese company Jingye since 2020, has warned that its operations are no longer financially sustainable, with losses of around £700,000 a day.

The company has rejected the government’s offer of £500 million in support to transition to more energy-efficient electric arc furnaces, which can’t produce the high-grade steel needed by industries like rail and construction. However, without an urgent supply of iron ore and other raw materials, production at the site is at risk of coming to a halt within weeks.

The UK Government’s response

Chancellor Rachel Reeves has reassured workers at the Scunthorpe site that nationalisation remains a viable option. She has emphasised the importance of steel production to the UK economy, especially in light of rising concerns over the impact of US tariffs on UK steel exports.

The British steel industry is facing significant challenges, with the 25% tariff imposed on American steel imports further compounding the financial strain.

The political situation is further complicated by the upcoming election for Lincolnshire’s first directly elected mayor, with several political leaders, including Nigel Farage, advocating for nationalisation to protect jobs and keep the steelworks running.

Farage has warned that without immediate intervention, the UK risks becoming the only G20 nation without primary steel production, a vital industry for national infrastructure and resilience.

The urgent need for a solution

While the government continues to explore potential solutions, including finding private-sector investment, many believe that nationalisation may be the only path forward.

Industry leaders, including the managing director of REIDsteel, a customer of British Steel, have stressed that without intervention, the shutdown of the blast furnaces would be a major blow to the UK’s steelmaking capacity.

Senior government figures, including Rishi Sunak, have stated that “all options remain on the table” to secure the future of the Scunthorpe plant. However, they have also indicated that the government prefers a commercially viable solution that minimises costs to taxpayers.

The situation at British Steel highlights bigger concerns about the future of the UK’s industrial base and its ability to remain competitive in a global market. As time runs out government officials need to find a solution that will prevent the closure of the Scunthorpe site and preserve steel production in the UK.

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The UK is taking steps to ensure its energy infrastructure is ready to support the rapid growth of artificial intelligence with its new AI energy council

On 8 April, the UK’s new AI Energy Council held its inaugural meeting in Whitehall, with experts from the energy and technology sectors coming together to discuss the power needed to drive the nation’s AI ambitions.

Using the power of AI to support energy projects

Co-chaired by the Secretaries of State for Technology and Energy, the Council hopes to impact the future of AI and energy in the UK, which will create new opportunities for economic growth and sustainable innovation.

As the UK government focuses on using AI for its economic plans, the AI Energy Council will ensure that the power required to fuel this technology is available, sustainable, and secure.

Some organisations participating in the Council are energy giants such as EDF, National Grid, Scottish Power, and Ofgem, alongside tech leaders like Google, Microsoft, Amazon Web Services, and ARM. Together, these industry experts will share their insights on meeting the growing energy demands of AI systems and data centres.

The UK increasingly focuses on clean energy sources like renewables and nuclear energy to meet its long-term energy goals. The Council will explore how these sources can be integrated into AI infrastructure, improving energy efficiency and sustainability across data centres.

One key area of focus is ensuring that AI’s energy needs are met in an environmentally responsible way, with particular importance on sustainably using resources like water.

Creating AI growth zones

One of the main parts of the UK’s strategy is creating AI Growth Zones, areas where AI development is concentrated.

These zones will have access to at least 500MW of power, enough to supply energy to around two million homes. This infrastructure will attract private investment and support the establishment of new AI-driven businesses, boosting local economies and creating thousands of new jobs.

The importance of collaboration between technology and energy sectors
This collaboration between the technology and energy sector is important as it ensures that the UK’s energy grid can accommodate the increased demand from AI.

The government is also working with Ofgem and the National Energy System Operator (NESO) to reform the country’s energy connection process. These reforms are expected to unlock more than 400GW of capacity from the connection queue, which will fast-track vital energy projects, including those needed to power large-scale AI data centres.

Along with the technical challenges, the AI Energy Council will also address concerns about the secure and fair adoption of AI across the UK’s energy infrastructure. With AI set to play a big role in transforming the energy sector, ensuring its safe and sustainable use is key. The Council aims to ensure that AI technologies benefit consumers, helping to drive down costs, improve efficiency, and enhance the overall reliability of the energy system.

The UK’s position in clean energy

By aligning AI development with clean energy solutions, the UK aims to unlock significant economic growth while advancing its climate goals.
The rapid pace of AI innovation and a strong focus on sustainability are expected to transform the UK into a hub for AI and clean energy technologies.

As the AI Energy Council moves forward, the UK is allowing itself to capitalise on the potential of AI, while ensuring that this growth is underpinned by a reliable, sustainable, and secure energy system.

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AI and energy infrastructureThe U.S. Department of Energy (DOE) has announced plans to boost America’s Artificial Intelligence (AI) leadership while reducing energy costs by co-locating data centres with new energy infrastructure on DOE lands

This initiative revealed through a recent Request for Information (RFI), hopes to support the growing demand for AI-driven data centres by using existing energy resources and fast-tracking the development of new infrastructure.

16 potential sites for rapid data centre development

The DOE has identified 16 potential sites across the country that are set for the rapid construction of data centres. These locations are strategically chosen due to their proximity to established energy infrastructure, which will help reduce construction time and costs.
The DOE can expedite permits for new energy generation, including nuclear energy, to ensure that the necessary power is available for these advanced facilities.

This plan aligns with the goals set by President Trump’s Executive Orders on Artificial Intelligence and Energy. These directives call for removing barriers to innovation and accelerating the development of AI and energy infrastructure in the U.S. The DOE’s new plan represents a strong effort to create public-private partnerships that can drive the growth of both industries in tandem, ensuring that the U.S. remains competitive on the global stage.

As demand for AI grows worldwide, data centres are expected to play a key role in supporting the massive computational power needed to drive AI advancements.
The DOE’s initiative aims to meet this demand by fostering collaboration between the public and private sectors to create an environment conducive to rapid innovation. The partnership between energy developers and data centre operators is key to achieving these ambitious goals.

The identified sites offer the necessary land and energy infrastructure and present opportunities for collaboration with some of the nation’s most advanced research facilities.
Co-locating data centres on DOE-managed sites will allow developers to tap into the expertise of the DOE’s national laboratories. These labs are at the forefront of energy technology research, and their involvement could help accelerate the development of next-generation data centre hardware and power systems.

Seeking industry input to refine the plan

The DOE is also seeking input from industry stakeholders, including data centre developers, energy companies, and the public, to refine the approach and ensure that the initiative meets the needs of all parties’ needs. The information collected through the RFI will help shape the development strategy for these AI infrastructure hubs, to launch the first operational centres by the end of 2027.

By tapping into its vast network of resources and expertise, the DOE hopes to help the U.S. lead the way in AI while maintaining a steady supply of affordable, reliable energy. These data centres will power AI’s growth and contribute to the nation’s energy security and long-term sustainability.

This initiative is a key part of a wider plan to use the potential of emerging technologies, and it shows the importance of collaboration between the government and private sectors in achieving national goals.

Innovation: U.S. Leadership in AI and energy infrastructure

As AI becomes an increasingly integral part of the global economy, the U.S. will remain at the forefront of this technological revolution, driving innovation and creating jobs.

The RFI is now open, and the DOE invites all interested parties to provide feedback and ideas to help shape this important project. The department is committed to ensuring that these new AI infrastructure hubs will meet the growing demands of the future while continuing to provide the energy solutions that Americans rely on daily.

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In hopes of strengthening the UK’s position as a global leader in clean energy, the government has announced a £20 million investment into the ‘Starmaker One’ fusion energy fund

This new partnership, the first of its kind between the government and private sector, hopes to unlock an additional £100 million for the burgeoning fusion energy industry.

Supporting fusion energy projects

The government’s funding will provide a strong boost to fusion businesses and start-ups, helping them to scale up and commercialise their innovative technologies.

Fusion energy, which mimics the process that powers the sun, involves combining two forms of hydrogen and heating them to extreme temperatures, releasing vast amounts of energy.

It has the potential to become a virtually unlimited and sustainable energy source. However, access to capital has caused issues with scaling up for many UK fusion companies.

The £20 million investment from the government will serve to de-risk fusion ventures and encourage private-sector investors to follow suit.

Greener global energy

The fund, managed by East X Ventures, will focus on early-stage fusion-related companies, helping them to develop important technologies and train a skilled workforce.

These efforts will span various sectors, including physics, engineering, and chemistry, and extend into industries, industrial AI, healthcare, and energy storage.

The government expects this funding to drive technological innovation and contribute to economic growth by creating thousands of skilled jobs across the UK, particularly in regions such as Nottinghamshire, Oxfordshire, and South Yorkshire.

Investing into Starmaker One

Fusion energy is expected to play a central role in the UK’s energy future, and the government is keen to ensure that the country remains at the forefront of this emerging sector.

The £20 million investment in ‘Starmaker One’ is just one part of a broader strategy to develop clean, homegrown power sources as part of the UK’s ‘Plan for Change.’ This plan aims to provide energy security, reduce reliance on fossil fuels, and accelerate the transition to a low-carbon economy.

Fusion technology to transform the energy landscape

Successful use of fusion energy could provide a reliable and clean source of baseload power, helping to meet the world’s rising energy demands while reducing carbon emissions.

The UK is well-positioned to benefit from the global fusion market, which is expected to be worth trillions of pounds in the coming decades.

The ‘Starmaker One’ fund is key to the UK government’s wider commitment to fusion energy. It follows the announcement of a record £410 million in January to support fusion research and international collaborations. The funding is expected to accelerate the development of fusion as a commercially viable energy source, with significant economic and environmental benefits for the UK.

The fusion sector has already created thousands of jobs in the UK, and this new funding initiative is expected to drive further job creation and economic activity in key regions. It is also anticipated that the development of fusion energy will help establish the UK as a hub for cutting-edge technologies in sectors ranging from magnetics and industrial AI to healthcare and transportation.

The UK is positioning itself as a global leader in this exciting and transformative technology. With the support of government and private sector investment, fusion energy could play a pivotal role in achieving a sustainable and prosperous future for the UK, while also providing the foundation for a cleaner, greener global energy market.

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