Tata Steel UK is making a big move toward cleaner and greener steel production. The company has received approval to build a new Electric Arc Furnace (EAF) at its Port Talbot site in South Wales. This project, which costs 1.25 billion pound and is partly funded by the UK government, will replace the old blast furnaces with a more environmentally friendly method. The new furnace will reduce carbon emissions by 90% and help keep 5,000 jobs secure. Unlike traditional steelmaking that relies on imported iron ore and coal, the EAF will use scrap steel, which is widely available in the UK.
The UK government sees this as a key step in transforming the steel industry. Business and Trade Secretary Jonathan Reynolds called it a “major step forward” and said the UK is in a strong position to lead the transition to green steel. The government has committed up to 2.5 billion pound to support the steel industry’s long-term growth. Tata Steel UK’s CEO, Rajesh Nair, highlighted that this investment is the biggest in the UK steel industry in decades. Large-scale work on the site will begin this summer, and the new furnace is expected to start operating by the end of 2027.
This change comes after Tata Steel UK closed its older iron and steel-making facilities, including blast furnaces and coke ovens. The company is already working with global experts like Tenova and construction firms like Sir Robert McAlpine to make the project a success. It has also signed a deal with JCB to supply green steel, showing its commitment to sustainable production. As demand for low-carbon steel increases worldwide, this transition will help Tata Steel UK remain a key player in the industry while reducing its environmental impact.
