Tata Steel signs contract for green steelmaking at Port Talbot
Tata Steel has signed a major contract with Tenova, a global leader in metals technology.
Last updated 18th Oct 2024
Tata Steel has signed a major contract with Tenova, a global leader in metals technology, to supply advanced electric arc furnace (EAF) technology and other for its steelmaking plant in Port Talbot.
The new EAF, scheduled to be operational by the end of 2027, is expected to cut Port Talbot's steelmaking carbon emissions by 90%, equivalent to 5 million tonnes of CO₂ annually.
The furnace will have the capacity to produce 3 million tonnes of steel per year, similar to the site’s current output, and will primarily melt scrap steel sourced from within the UK.
This shift will not only reduce the UK’s reliance on imported iron ore but also strengthen the resilience of domestic supply chains.
In addition to the EAF, Tenova will supply ladle metallurgy furnaces, which will refine the molten steel to produce higher-grade materials required by industries across the UK and abroad.
Mr. T. V. Narendran, CEO and Managing Director of Tata Steel Limited, said: "This landmark agreement will enable us to transform our steelmaking site, supporting both the UK’s decarbonisation journey and economic development in South Wales".
"Today marks an important milestone in making low-CO₂ steelmaking a reality in Port Talbot...
while also reducing the UK’s carbon emissions and helping our customers meet their own carbon reduction targets."
The £1.25 billion project is backed by a joint investment between Tata Steel and the UK Government, with Tata Steel committing £750 million and the government providing up to £500 million.
UK Business and Trade Secretary Jonathan Reynolds said: "This agreement is further proof of our commitment to a bright future for UK steelmaking".
Engineering work is currently underway, with additional equipment orders for other areas of the Port Talbot site, such as the Hot Strip Mill and Casters, expected soon.
Welsh Secretary Jo Stevens said:
“This agreement is an important step towards a secure long-term future for steelmaking in Port Talbot."
“As the transition to greener steelmaking begins, we have also quickly released millions of pounds of funding from the Port Talbot Transition Board which is supporting businesses and workers in Port Talbot and across South Wales."
“This government is determined to back workers and businesses in our Welsh steel industry whatever happens.”
Public consultation on the planning application has been completed, and Tata Steel plans to submit the application by November 2024.
Large-scale site work is set to begin in July 2025.