In a significant step towards sustainable steel production, Neath Port Talbot Council has granted planning approval for Tata Steel UK’s Electric Arc Furnace (EAF) in Port Talbot. This project, aimed at revolutionising the UK’s steel industry, is set to commence large-scale construction this summer, with the EAF expected to be operational by late 2027. Tata Steel Limited owns Tata Steel UK. Share price of Tata Steel was trading higher by 1.23% as of 11:39 AM.
Tata Steel UK’s £1.25 billion investment marks one of the most substantial commitments in the UK steel industry in decades. The project will modernise steel production and secure thousands of jobs while transitioning towards greener manufacturing practices. Supported by £500 million from the UK Government, the initiative will help sustain 5,000 Tata Steel UK jobs and significantly cut CO₂ emissions.
According to Rajesh Nair, CEO of Tata Steel UK, this approval is a crucial milestone in their journey towards sustainable steelmaking. “Amidst a challenging global market, this is a significant milestone for the project and we are committed to begin large-scale work on site this summer, ahead of the Electric Arc Furnace starting up from the end of 2027,” he said.
The Electric Arc Furnace will replace the site’s ageing steelmaking assets, which included coke ovens, a sinter plant, and blast furnaces that were closed last year. Unlike traditional blast furnaces that rely on imported iron ore and coal, an EAF primarily melts scrap steel using electricity, reducing dependence on raw material imports.
This shift is expected to lower on-site CO₂ emissions by 90%, equivalent to 1.5% of the UK’s total direct emissions. The move aligns with Tata Steel’s broader sustainability goals, which include achieving net-zero steel production by 2045 and reducing CO₂ emissions by 30% by 2030.
The UK Government sees this project as a key component of its industrial and environmental strategy. Business and Trade Secretary Jonathan Reynolds highlighted the deal as a major step in securing the future of Welsh steelmaking.
“This is a major step forward in securing a bright, long-term future for steel in South Wales, following the improved deal for Port Talbot’s transition we agreed with Tata Steel and the next phase of our Plan for Steel – unveiled last week. Today’s news will provide security for Port Talbot’s green steel transition and help give Welsh steelmaking the certainty it needs to drive growth and attract investment, as part of our Plan for Change.”
Tata Steel UK has been making steady progress in its transition to sustainable steelmaking. The company recently signed a deal with construction equipment giant JCB for the supply of green steel and appointed Sir Robert McAlpine as the main works contractor for the project. Additionally, Tenova, a global metals technology leader, has been selected to supply the new furnace.
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Published on: Feb 19, 2025, 2:55 PM IST
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