Tata Steel has entered into a contract with Tenova, a leading manufacturer of metals technology, to install a cutting-edge electric arc furnace (EAF) and other advanced steelmaking equipment at its Port Talbot facility in Wales, UK. This partnership represents a key step toward producing greener steel at the site.
Expected to be operational by the end of 2027, the EAF will help reduce carbon emissions from steel production at Port Talbot by 90%, amounting to approximately 5 million tonnes of CO₂ annually. Tenova will provide an EAF capable of producing 3 million tonnes of steel per year, comparable to the output from the current blast furnaces, by melting scrap steel sourced from the UK.
Utilizing scrap steel will also diminish the UK’s dependence on imported iron ore, thereby enhancing the resilience of the country’s manufacturing supply chains. Additionally, Tenova will supply ladle metallurgy furnaces, which will refine the molten steel to create more complex grades needed by manufacturers both in the UK and internationally.
Mr TV Narendran, CEO and Managing Director of Tata Steel Limited, emphasized the significance of this agreement, stating, “This landmark contract will transform our steelmaking operations, supporting the UK’s decarbonization efforts while fostering economic growth in South Wales. Today marks a pivotal moment in the realization of low-CO₂ steelmaking in Port Talbot, contributing to reducing carbon emissions and assisting our customers in achieving their carbon reduction goals.”
This collaboration is backed by a joint investment of £1.25 billion from Tata Steel and the UK Government, with Tata Steel contributing £750 million and the government providing up to £500 million. UK Business and Trade Secretary Jonathan Reynolds commented, “This partnership builds on the improved agreement between the Government and Tata Steel and underscores our commitment to a promising future for the UK steel industry. Technology such as Tenova’s furnaces is essential for decarbonizing the sector, facilitating skilled job creation, and ensuring economic stability for future generations of steelworkers in South Wales. Our forthcoming steel strategy will offer further clarity for the sector, outlining plans for long-term growth and sustainability, supported by up to £2.5 billion for the steel industry.”
Paolo Argenta, Executive Vice President for Tenova’s Upstream Business Unit, expressed confidence in the collaboration, stating, “Our cooperation with Tata Steel UK has reached an unprecedented level of transparency, which we believe will lead to successful project implementation. Tenova’s global partnership with Tata Steel, including projects in other regions, reinforces our strong alliance.”
Detailed engineering work is currently underway, with additional equipment orders for the Hot Strip Mill, caster life extension, new Pickle Line, cranes, and construction management to be placed soon. Tata Steel has also completed public consultations for the planning application and is collaborating with authorities to submit the application in November 2024, aiming to begin large-scale site work by July 2025. The Tata Steel Group has been recognized as one of the most ethical companies globally and ranks among the leading steel producers, boasting an annual crude steel capacity of 34 million tonnes.
In the UK, Tata Steel aims to achieve net-zero steel production by 2045, with a goal of reducing its CO₂ emissions by 30% by 2030. As the largest steel producer in the UK, Tata Steel operates its primary steelmaking facility in Port Talbot, South Wales, which supports manufacturing and distribution operations across Wales, England, Northern Ireland, and extends to Norway, Sweden, France, and Germany. The company also has a network of international sales offices worldwide.
Employing over 8,000 individuals, Tata Steel has an annual crude steel capacity of 5 million tonnes, providing high-quality steel products to demanding sectors such as construction, infrastructure, automotive, packaging, and engineering. Tata Steel Group is recognized as one of the most geographically diversified steel producers, with operations and a commercial footprint spanning the globe.
