Liberty House, which is bidding for all assets of Tata Steel UK, has roped in Julian Allwood, a Cambridge University expert in steel recycling.
Two others submitted bids for Tata Steel UK — Excalibur (mainly for the Port Talbot plant) and Albion Steel (for specialist steel unit in south Yorkshire).
The company prefers to sell its entire assets to one bidder.
Allwood and his research team recently published a report titled ‘A Bright Future for UK Steel’ that concluded that the world already has more blast furnaces than it will ever need.
The report argues for making liquid steel in the UK from low-cost and abundant domestic scrap, most of which is currently exported for melting abroad.
Liberty House executive chairman Sanjeev Gupta said: “The conclusions of the Cambridge team match our own industry analysis and our ‘green steel’ strategy very closely and we believe their work will be hugely valuable to us in developing and refining our business model for the sector”.
“Making liquid steel from scrap involves half the cost and a third of the carbon footprint of the equivalent blast furnace method.”