Corus unveiled a £60m energy saving project at its Port Talbot site in South Wales on Wednesday which has cut its carbon emissions by 240,000 tonnes per year.
The company, which has been owned by India's Tata Steel since 2007, produces 5 million tonnes of steel a year at Port Talbot and employs 3,500 people.
The investment was made at the site's basic oxygen steel-making process which converts molten iron into steel. Corus has fitted new gas recovery equipment which catches and stores carbon monoxide gas for use as a fuel elsewhere on site. Previously the gas was flared, wasting energy and releasing carbon dioxide.
The recovered gas is used in the power plant to generate 10% of the site's electricity needs. This allows higher-energy gas from the coke ovens to be used more effectively in the steel strip mill, reducing natural gas consumption at the mill by 60%.
The energy saving means the investment will pay back in just two years.
Gas recovery will reduce Port Talbot's annual carbon emissions by 3% and Tata Steel Europe's emissions by 1%. It will also reduce the site's emissions of particulate matter by 40 tonnes per year, improving air quality.
Paul Brooks, Corus's group environment manager, said although gas recovery is widely used on newer steelworks, retrofitting it to an existing plant was a unique and challenging undertaking that involved re-engineering the site's energy system, a task that had previously been considered too difficult and too expensive.
Tata Steel Europe's chief executive Kirby Adams said the project was the biggest investment in the UK Steel industry since Tata acquired Corus and part of the company's commitment to steelmaking in Wales.
The new Lib Dem-Conservative government has agreed to make radical changes to policy on air transport and energy generation. But it will support a new generation of nuclear power stations, provided they require no public subsidy.
Liberal Democrat Chris Huhne, formerly home affairs spokesman, has taken control at the department of energy and climate change (DECC). He had opposed a new generation of nuclear power stations. Today he told the BBC the coalition had agreed the Lib Dems would abstain when parliament voted on the new National Policy Statement on nuclear power.
Caroline Spelman, a Tory, has been appointed Secretary of State for the Environment. She has many years' experience holding jobs connected with agriculture and is director of a food and biotechnology consultancy.
Ex-Conservative party chairman Eric Pickles will lead the communities department (DCLG), which he has shadowed, while Philip Hammond is transport secretary.
Few junior ministers have yet been announced.
A full document on the agreement between the two parties will be published in due course. But a brief summary of policy includes:
A "huge increase" in anaerobic digestion is promised, plus a boost to renewable generation and the roll-out of a smart grid and smart metering. A vague pledge of the "full establishment" of feed-in tariffs is part of the agreement.
· 10 Downing Street press conference
· Cabinet posts
· Coalition agreement between the Conservatives and the Liberal Democrats
· Friends of the Earth press release
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