It's a steel
Tees freeport , Issue 1622 THE same businessmen who are squeezing nine-figure sums from the publicly funded regeneration of former steelworks land on the south bank of the River Tees (Eyes passim) have also captured Chinese-owned British Steel's much- trumpeted plans for a new electric arc furnace to recycle steel at its neighbouring site, with the help of an expected £500m taxpayer subsidy.

Documents obtained by the Eye under freedom of information laws show that in the months leading up to and following the 6 November announcement by British Steel and Tees Valley regional mayor Lord (Ben) Houchen, weekly "development" meetings were held featuring British Steel, its parent company Jingye and a company called Theakston Land Ltd.

This is a housing development company with no interest in either the regeneration site or British Steel's site and no previous involvement in steel. But it is controlled by one Martin Corney, who along with another developer, Chris Musgrave, owns 90 percent of Teesworks Ltd – the company that controls development of the neighbouring old steelworks site.

No minutes to waste
Houchen's Tees Valley Combined Authority refused to name which individuals attended these meetings or provide minutes (which may not exist), but summary agendas do show that matters discussed were: planning, electrical supply, scrap supply and demolition work. Separately, Houchen, keen to show he is "bringing back steelmaking", held weekly online, unminuted, "update" calls.

Further documents show plans for British Steel's new furnace to be powered by a private wire network that will be jointly owned by Corney and Musgrave's new company, Steel River Energy Ltd, without them investing any money into it (Eye 1620). While the electric arc furnace is presented as a greener alternative to blast furnace steel production, it will still require huge power input and thus generate handsome fees to those owning the power network, namely Corney, Musgrave and their commercial partners.

Money to burn
Emails about powering the plant were exchanged between British Steel and unnamed individuals operating from Theakston Land's Chester-le-Street offices. On 19 November, a letter to British Steel chairman Xijun Cao was sent jointly from Lord Houchen and the "Teesworks CEO", whose name was (bizarrely) redacted but is certainly Martin Corney; elsewhere he revels in this title.

They expressed the hope that "you welcomed and fully understood the technical and commercial offer for [the furnace's] connection and operation on the Teesworks private wire network", and promised to pursue the same support for energy-intensive industries buying power from a private network as is given to those getting it from the national grid.

They would "directly challenge government on British Steel's behalf" and "engage government ministers and speak with hem directly about the support [ie taxpayer-funded subsidy] British Steel requires".

Houchen and Corney also impressed on Cao the urgency of getting a planning application in, ensuring approval was granted before the forthcoming mayoral election. Permission was duly granted earlier this month.