TATA STEEL has signed a contract to bring a new electric arc furnace and additional advanced steelmaking equipment to its biggest UK site in Port Talbot.
The India-based steel company announced the move with metals technology manufacturer Tenova on October 18 as part of its switch to produce greener steel in south Wales.
A report said when commissioned from the end of 2027 it is anticipated that the new the electric arc furnace, or EAF, will reduce the site’s steel-making carbon emissions by 90% – equivalent to five million tonnes of CO₂ a year.
The site will also have an annual capacity of three million tonnes of steel – a figure described as being “similar” to the output of the site’s blast furnaces by melting scrap steel sourced from the UK.
The decision could be a significant moment in the transformation of Port Talbot over the coming years with the closure of the steelworks’ two blast furnces putting 2,800 jobs at risk earlier this year.
Speaking after the announcement T V Narendran, CEO and MD of Tata Steel Limited, said: “This landmark agreement will enable us to transform our steel-making site that will not only support the UK’s de-carbonisation journey but also provide economic development opportunities for south Wales.
“Today marks an important milestone in making low-CO₂ steel-making a reality in Port Talbot as well as reducing the UK’s carbon emissions and supporting our customers with their own carbon reduction targets.”
UK business and trade secretary Jonathan Reynolds said: “This partnership follows in the footsteps of an improved deal between the government and Tata Steel and is further proof of our commitment to a bright future for UK steel-making.
“Technology like the furnaces made by Tenova is critical to de-carbonising the industry, unlocking its potential to provide skilled jobs, and creating economic stability for future generations of steelworkers in south Wales.
“Our upcoming steel strategy will provide further certainty for the sector as we set out our plan for its long-term growth and viability backed by up to £2.5bn for steel.”
