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Tata Steel UK has received the green light to revolutionize its steelmaking operations in Port Talbot, marking a pivotal shift toward sustainable production. The company’s proposal to introduce an Electric Arc Furnace (EAF) has officially secured approval, paving the way for a cleaner, more efficient future.
This transition comes on the heels of a significant chapter closing—the plant’s last operational blast furnace was shut down in September, leading to nearly 2,000 job losses. Now, with the EAF set to take centre stage, the industrial landscape of Port Talbot is poised for a dramatic transformation.
In a landmark decision, Neath Port Talbot Council’s Planning Committee sanctioned the project on February 18, unlocking an opportunity to slash on-site CO2 emissions by a staggering 90%. This reduction isn’t just a local victory; it accounts for a remarkable 1.5% of the UK’s total direct carbon emissions, underscoring its significance on a national scale.
Backed by £500 million from the UK Government, the investment is a lifeline for the workforce, securing 5,000 jobs at Tata Steel UK. The approved plans encompass the Electric Arc Furnace and the construction of two new Ladle Metallurgy Furnaces—essential for refining steel quality—alongside a suite of supporting infrastructure.
Rajesh Nair, CEO of Tata Steel UK, said: "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 £1.25bn 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."
Business and trade secretary Jonathan Reynolds 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 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."
Unlike the traditional blast furnace method, which hinges on imported iron ore and coal, the Electric Arc Furnace harnesses electricity to melt predominantly scrap steel—a resource abundantly available within the UK. This shift mitigates dependency on raw material imports while aligning with broader sustainability goals.
The closure of Port Talbot’s ageing infrastructure—including its harbour, coke ovens, sinter plant, and blast furnaces—was necessary for modernization. With this green steel initiative in motion, the facility is poised to redefine its role in the global steel industry.
This milestone is just one of Tata Steel's strategic moves to drive its transition to low-carbon steelmaking. In December, the company inked a deal with JCB to supply green steel, further cementing its commitment to sustainability.
January saw the appointment of Sir Robert McAlpine as the project’s main works contractor, reinforcing the initiative's momentum. Meanwhile, in October, Tata Steel enlisted Tenova, a leading metals technology manufacturer, to supply the new Electric Arc Furnace, signalling a deliberate push toward cutting-edge steel production.
With the wheels now firmly in motion, Tata Steel UK is not merely adapting to industry changes—it’s actively shaping the future of green steel.
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