Tata Steel UK has received planning approval from Neath Port Talbot Council to proceed with its ambitious Electric Arc Furnace (EAF) steelmaking facility in Port Talbot. This landmark decision marks a major step toward sustainable steel production in the UK. The project, backed by £500 million in UK Government funding, represents a £1.25 billion investment—the largest in the UK steel industry in decades. Tata Steel UK CEO Rajesh Nair emphasized that this development will secure high-quality steel production, preserve thousands of jobs, and significantly reduce carbon emissions.
The new EAF facility is set to begin construction this summer, with operations scheduled to commence by late 2027 or early 2028. The plant will replace outdated blast furnace-based production with a more sustainable electric arc process that primarily uses scrap steel, significantly reducing reliance on imported iron ore and coal. The transition is expected to cut on-site CO₂ emissions by 90%, equivalent to 1.5% of the UK’s total direct emissions. UK Business and Trade Secretary Jonathan Reynolds described the approval as a crucial step in securing a long-term future for steel production in South Wales, aligning with the UK’s broader industrial decarbonization strategy.
The approved planning application includes the construction of an Electric Arc Furnace, two new Ladle Metallurgy Furnaces for secondary steelmaking, and essential supporting infrastructure. This transition follows Tata Steel’s closure of its traditional iron and steelmaking assets at the site, including the harbour, coke ovens, sinter plant, and blast furnaces, as part of its commitment to net-zero steel production by 2045. While the new facility is under construction, Tata Steel will import slabs and hot rolled coils to maintain supply across its UK and European operations, ensuring continued support for industries such as construction, automotive, packaging, and engineering.
Tata Steel UK has already made significant progress in its green steel transformation. In December 2023, the company signed a deal with JCB for the supply of green steel, reinforcing its commitment to sustainable partnerships. In October 2024, Tata Steel appointed world-leading metals technology manufacturer Tenova to supply the new furnace, and Sir Robert McAlpine was recently named as the project’s main works contractor. These strategic moves position Tata Steel as a key player in the global shift towards low-carbon steel production.
As one of the world’s most ethically recognized and geographically diversified steel producers, Tata Steel Group operates with an annual crude steel capacity of 34 million tonnes. The company recorded a consolidated turnover of $27.7 billion in the 2023-24 financial year and continues to drive innovation in sustainable steelmaking. With the Port Talbot green steel project now moving forward, Tata Steel UK is set to play a pivotal role in the UK’s industrial transformation, ensuring a more sustainable, competitive, and resilient steel sector for the future.
