Tata Steel wins approval for £1.25 Billion electric arc furnace project in Port Talbot

19 Feb 2025 , 12:18 PM

Neath Port Talbot Council Planning Committee in UK approve Tata Steel Ltd’s state-of-the-art EAF at Port Talbot. This project is supported by the UK Government with £500 million and is set to safeguard 5,000 jobs and dramatically cut the carbon emissions from the site.

The transition from conventional blast furnace steelmaking to EAF technology will reduce direct on-site CO₂ emissions by 90%, equivalent to 1.5% of the UK’s total direct CO₂ emissions. Rajesh Nair, CEO of Tata Steel UK, called it another milestone in building the sustainability-focused plant at Port Talbot.

The company plans to begin large-scale construction this summer and hopes to have the EAF operational by late 2027. An investment of £1.25 billion makes this project the most significant investment in the UK steel industry in decades.

It will allow us to continue our longstanding tradition of producing high-quality steel, protect 1000s of jobs and protect Port Talbot’s steel industry for generations to come.”

Business and Trade Secretary Jonathan Reynolds has said this project was an important milestone in securing the long-term future of South Wales’ steel sector through the government’s Plan for Steel.

The planning approval includes permission for:

• An Electric Arc Furnace
• Two new Ladle Metallurgy Furnaces for secondary steelmaking
• Supporting infrastructure

Electric Arc Furnace technology uses electric energy to melt scrap steel, decreasing the dependency on imported iron ore and coal therefore more sustainable and cost-effective.

Last year, it also idled ageing iron and steelmaking assets at the site, including the harbour, coke ovens, sinter plant and blast furnaces as the transition continued. In December 2024, Tata Steel signed a green steel supply agreement with JCB to reaffirm Tata Steel’s commitment to sustainable manufacturing. In October 2024, in a significant advance for UK steel, Tata Steel teamed up with Tenova, a world leading metals technology company, to install a new Electric Arc Furnace.