Tata Steel has announced plans to build a £1.5 billion electric arc furnace (EAF) facility at its Port Talbot site in Wales, with construction set to begin in July 2025 and operations expected to commence by 2027. The UK government is supporting the project with £500 million in funding.
The new facility is part of Tata Steel’s strategy to transition from traditional blast furnace steelmaking to a more sustainable EAF process. The EAF technology will utilize locally sourced scrap to produce steel, significantly reducing carbon emissions compared to the previous method. Once operational, the plant aims to cut over 50 million tonnes of CO₂ emissions over the next decade, aligning with the UK’s decarbonization goals.
The project has received all necessary planning approvals and is expected to safeguard 5,000 jobs at the Port Talbot site. Additionally, it is anticipated to reduce the site’s CO₂ emissions by 90 per cent, contributing to a 7 per cent reduction in the UK’s total industrial emissions.
Tata Steel has partnered with Italy-based Tenova to supply the EAF equipment for the facility. The collaboration marks a significant step in the company’s efforts to modernize its operations and produce greener steel in the UK.
This development underscores the growing commitment to sustainable manufacturing practices in the steel industry and highlights the importance of government support in achieving environmental targets.