British Steel has officially green-lit a £1.2 billion project to build the world's largest electric arc furnace in Teesside, a move that will virtually eliminate the carbon footprint of its UK operations by 2030.

The furnace will use scrap steel and renewable electricity, replacing traditional coal-fired blast furnaces. The project is expected to safeguard 2,000 existing jobs and create hundreds more during the construction phase.

"Teesside is reclaiming its title as the steel capital of the world—but this time, it's green," said the Secretary of State for Business.