PLANS to construct what is believed to be one of the world’s largest electric arc furnaces (EAF) for steelmaking have been granted approval in Port Talbot, South Wales.
Steel giant Tata Steel UK has received the green light to proceed with its ambitious £1.25 billion project, which is expected to be operational by the end of 2027. The proposal was submitted in November 2024, and on Tuesday, 18 February 2025, Neath Port Talbot Council’s planning committee officially approved the application.
The new EAF will be built on the site of the existing Port Talbot steelworks, replacing the Basic Oxygen Steelmaking (BOS) plant. The project represents a significant shift towards more sustainable steel production.
A milestone for the future of British steel
Rajesh Nair, CEO of Tata Steel UK, hailed the approval as a crucial step forward for the company and the industry.
“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.
“This £1.25 billion investment is the most significant investment made in the UK steel industry in decades. The facility will secure high-quality steel production, preserve thousands of jobs, and safeguard steelmaking in Port Talbot for generations to come.”
The approval follows Tata Steel’s decision to close the last blast furnace at the Port Talbot site in September 2024, a move that placed over 2,800 jobs at risk and marked the end of traditional steel production in the town.
A shift towards greener steel production
The transition to electric-powered steelmaking, which involves melting scrap steel rather than using coal and iron ore, is expected to reduce the site’s steelmaking carbon emissions by 90%, according to Tata Steel. The company cited financial losses and a commitment to environmental sustainability as key reasons for the change.
The planning permission allows for the demolition of existing buildings and structures, partial infilling of the BOS lagoon, and the construction of the new EAF-based steel production facility. Additionally, Tata’s application includes plans for two new ladle metallurgy furnaces for secondary steelmaking and supporting infrastructure.
Strategic partnerships and government support
Tata Steel has already secured key partnerships to support the project. In October 2024, it signed a contract with metals technology manufacturer Tenova to supply the new furnace. In December, a deal was signed with British construction equipment manufacturer JCB to supply steel from the EAF. Last month, the company appointed Sir Robert McAlpine as the project’s main works contractor.
The UK Government is backing the project with £500 million in funding. Business and Trade Secretary Jonathan Reynolds described the approval as a “major step forward” for the future of steelmaking in South Wales.
“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.”
With plans now approved, work is set to begin this summer, marking the start of a transformative period for Port Talbot’s steel industry.
Plans approved for one of the world’s largest electric arc furnaces in Port Talbot
