Tata Steel UK receives green light for electric arc furnace project in Port Talbot

Neath Port Talbot Council’s Planning Committee has approved Tata Steel UK’s proposals to deliver modern Electric Arc Furnace steelmaking in Port Talbot. Rajesh Nair, CEO, Tata Steel UK said amid a challenging global market, getting approval for the project is a significant milestone and the company is committed to begin large-scale work on site this summer, ahead of the Electric Arc Furnace starting up from the end of 2027. “The 1.25-billion-pound 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 steel making in Port Talbot for generations to come,” he said.

Supported by £500 million of UK Government funding, the investment will preserve 5,000 Tata Steel UK jobs and cut on-site CO2 emissions by 90 per cent compared to previous blast furnace-based steelmaking – equivalent to 1.5 per cent of the UK’s total direct CO2 emissions.

Jonathan Reynolds, Secretary of Business and Trade, said 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 agreed with Tata Steel and the next phase of Plan for Steel – unveiled last week.

“It 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,” he said. In December, the company signed a deal with JCB to supply green steel, and last month, it appointed Sir Robert McAlpine as the project’s main works contractor.

Last October, Tata Steel appointed the world-leading metals technology manufacturer Tenova to supply the new furnace.