British Steel electric arc furnace approved
British Steel has been granted planning permission to build a new electric arc furnace at its Scunthorpe headquarters.
The company said the facility at the Brigg Road site would allow it to use greener methods to produce steel.
Preparation work and environmental studies for the project have already started and the firm said it would be "delivered at the earliest opportunity".
Union bosses have previously told the BBC the new furnace could lead to the loss of 2,000 jobs in Northern Lincolnshire.
'Unprecedented investment'
The decision by North Lincolnshire Council to grant planning permission follows approval for a similar facility at British Steel's site on Teesside.
British Steel president and chief executive, Xijun Cao, said the development of both sites was a "significant step" towards the firm's net zero targets.
He said: "Our owner, Jingye, is committed to the unprecedented investment decarbonisation requires.
"It is imperative swift and decisive action is taken to ensure a sustainable future for British Steel."
The company also described the £1.25bn project as the "biggest transformation in more than a century of steelmaking".
British Steel confirmed preliminary talks have taken place with trade unions and promised to support employees affected by the plans.
Last week, a petition containing 30,000 signatures calling for government support for the steel industry, was handed to politicians in Scunthorpe.
North Lincolnshire Council leader, Rob Waltham, said the authority was also working with British Steel to develop 300 acres (121 hectares) of land to attract new jobs to the area.
He said: "There is an opportunity to create something new, attracting innovative technology companies here to Scunthorpe.
"At the same time as working on this plan, we continue to do all we can to protect jobs on the Scunthorpe site."
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