Tata Steel UK has secured planning approval from Neath Port Talbot Council to build a state-of-the-art Electric Arc Furnace (EAF) steelmaking facility in Port Talbot. This decision is a significant milestone in the UK’s push for sustainable steel production. The project, supported by £500 million in UK Government funding, forms part of a £1.25 billion investment—the largest in the UK steel industry in decades. Tata Steel UK CEO Rajesh Nair highlighted that the new facility will ensure high-quality steel production, protect thousands of jobs, and drastically cut carbon emissions.
Construction of the EAF plant is set to begin this summer, with operations expected to start by late 2027 or early 2028. The facility will replace traditional blast furnaces with a more environmentally friendly electric arc process, which primarily uses scrap steel. This shift will reduce the need for imported iron ore and coal, cutting on-site CO₂ emissions by 90%. This reduction is equivalent to 1.5% of the UK’s total direct emissions. UK Business and Trade Secretary Jonathan Reynolds called the approval a vital step in securing the future of steel production in South Wales and supporting the UK’s broader decarbonization goals.
The approved plans include building an Electric Arc Furnace, two Ladle Metallurgy Furnaces for refining steel, and necessary infrastructure. This move follows Tata Steel’s decision to close older, less sustainable assets at the site, such as blast furnaces and coke ovens, as part of its commitment to achieving net-zero steel production by 2045. During the construction phase, Tata Steel will import slabs and hot rolled coils to maintain supply for its UK and European customers, ensuring uninterrupted support for key industries like automotive, construction, and packaging.
Tata Steel UK has already taken significant steps toward its green steel transformation. In December 2023, the company signed an agreement with JCB to supply green steel, showcasing its dedication to sustainable partnerships. In October 2024, Tata Steel appointed Tenova, a global leader in metals technology, to supply the new furnace. Sir Robert McAlpine was recently named the main contractor for the project. These strategic decisions underscore Tata Steel’s role as a leader in the global transition to low-carbon steel production.
As one of the world’s most ethical and geographically diverse steel producers, Tata Steel Group has an annual crude steel capacity of 34 million tonnes. The company reported a consolidated turnover of $27.7 billion in the 2023-24 financial year and continues to innovate in sustainable steelmaking. With the Port Talbot green steel project now moving forward, Tata Steel UK is poised to play a central role in the UK’s industrial transformation, ensuring a more sustainable, competitive, and resilient steel sector for the future.
