Tata Steel starts construction of Electric Arc Furnace at UK plant for green steel prodn
London: Tata Steel officially broke ground on the UK’s largest low-carbon steel plant at Port Talbot in Wales, marking the start of construction of a new electric arc furnace (EAF) that is central to the company's green transformation agenda in Britain.
The groundbreaking event was attended by Tata Group Chairman N Chandrasekaran, the company said in a statement.
With a capital investment of GBP 1.25 billion, the project will replace coal-fired blast furnaces with scrap-based electric arc furnaces, which Tata Steel says can reduce carbon dioxide emissions by up to 90%.
Once operational, the new facility is expected to produce 3 million tonnes of steel annually.
The UK government is supporting the project with GBP 500 million in funding, as part of an agreement signed in 2023.
Tata Steel noted that the transformation project will help secure around 5,000 direct jobs.
“At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership,” said Chandrasekaran. “This project is also part of Tata Group’s wider investment in the UK, across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country.”
The electric arc furnaces are slated to be commissioned by the end of 2027, with multiple contractors and consultants already onboard.
Tata Steel has also finalised a power supply agreement with the UK’s National Grid to support operations at the site.
UK Business Secretary Jonathan Reynolds welcomed the development, stating the government’s support was aimed at securing a strong future for the UK’s steel sector.
“This investment is part of our industrial strategy to support jobs, innovation, and a sustainable economy,” he said.
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