Tata Steel UK secures approval for Electric Arc Furnace in Port Talbot
London: Tata Steel UK announced on Tuesday that it has secured approval for its state-of-the-art Electric Arc Furnace (EAF) project in Port Talbot, South Wales.
The initiative represents a major step in the company’s transition to greener steel production, aiming to reduce on-site CO2 emissions by 90%.
The £1.25 billion project, supported by £500 million in UK government funding, is expected to safeguard 5,000 jobs while ensuring the long-term sustainability of steel manufacturing in the region.
It marks a significant shift from conventional blast furnace technology to more environmentally friendly methods.
Set to be operational by the end of 2027, the facility underscores Tata Steel’s commitment to pioneering green steel production while aligning with the UK government’s broader vision for a sustainable steel industry.
Rajesh Nair, CEO of Tata Steel UK, stated, “We are very pleased to have secured approval to build sustainable steelmaking in Port Talbot. 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.”
The investment, supported by the UK government’s £500 million contribution, will ensure the retention of 5,000 Tata Steel UK jobs and lead to a 90% reduction in on-site CO2 emissions compared to the previous blast furnace-based production, equivalent to 1.5% of the UK’s total direct CO2 emissions.
UK Business and Trade Secretary Jonathan Reynolds described the approval as "a major step forward in securing a bright, long-term future for steel in South Wales," following the improved agreement reached with Tata Steel.
He added, “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.”
The approved planning application includes the construction of an Electric Arc Furnace, two new Ladle Metallurgy Furnaces for secondary steelmaking, and necessary infrastructure.
Unlike traditional blast furnaces that rely on imported iron ore and coal, the EAF will primarily use scrap steel, which is widely available in the UK.
Last year, Tata Steel shut down its ageing iron and steelmaking facilities at the site, including the harbour, coke ovens, sinter plant, and blast furnaces.
This latest approval follows other key milestones in Tata Steel’s green steel transition.
In December, the company signed a deal with JCB for the supply of green steel, and in January, it appointed Sir Robert McAlpine as the main contractor for the project. Additionally, in October, Tata Steel partnered with Tenova, a global leader in metals technology, to supply the new furnace.
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