Tata Steel’s £1.25 Billion Green Steel Project to Secure Jobs and Cut Emissions

On September 11, 2024, Tata Steel announced that it has secured a £500 million grant from the UK Government. This funding will help speed up the company’s £1.25 billion green steel project at the Port Talbot steel plant in Wales. The project aims to install a modern Electric Arc Furnace, a key step towards more sustainable steel production.

This project marks a key turning point for the future of steel production in the UK. The £1.25 billion investment is the largest in the UK’s steel industry in decades and will protect the country’s steel production, secure operations at Port Talbot, and preserve 5,000 jobs.

The new facilities will cut the UK’s overall industrial carbon emissions by 8%, with a 90% reduction at Port Talbot itself. The project also focuses on sustainability, using UK-sourced scrap metal. Tata Steel is contributing £750 million and leveraging its global engineering expertise, supported by a £500 million grant from the UK Government.

Basic engineering work is already finished, and orders for key equipment, such as the Electric Arc Furnace (EAF), coil box, and cranes, will be placed soon. Tata Steel has started public consultations and is working with authorities to secure planning approvals by November 2024. Large-scale construction is expected to begin by July 2025, with the EAF becoming operational within three years.

The workforce has shown dedication in safely shutting down operations at Blast Furnace #5 and the Morfa coke ovens. Plans are also underway to close Blast Furnace #4 and other heavy-end operations at Port Talbot by the end of September, with alternative supply chain arrangements in place until the EAF is up and running.

Tata Steel is taking steps to support employees affected by the transition, as part of one of the largest industrial shifts in the UK. This has been made possible through the responsible cooperation of Tata Steel’s workforce, the UK Steel Committee representing trade unions, and the UK Government’s backing.

After thorough discussions with employee representatives, Tata Steel has signed a Memorandum of Understanding with the UK Steel Committee. The company is offering its most generous support package ever for employees leaving the company, including voluntary redundancy options, re-skilling opportunities, and job matching.

For any Port Talbot employees facing potential redundancy, Tata Steel will provide the option to join a paid retraining program for a set period to help them find new employment.

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