Tata Steel has signed a contract with Italian metals technology firm Tenova to install a cutting-edge electric arc furnace (EAF) at its Port Talbot plant in Wales, marking a significant step in its shift toward green steelmaking. The furnace is expected to reduce carbon emissions at the UK’s largest steelworks by 90% annually once operational by late 2027.

The EAF, with an annual capacity of 3 million tonnes, will replace recently decommissioned blast furnaces and rely on scrap steel sourced domestically to ensure sustainable production.

“This partnership builds on our enhanced agreement with the government and reflects our commitment to the future of UK steelmaking,” said UK Business and Trade Secretary Jonathan Reynolds. He emphasised that technologies like Tenova’s EAFs are critical for decarbonizing the steel industry, creating skilled jobs, and securing economic stability in South Wales. Reynolds also noted that the government’s forthcoming steel strategy, backed by £2.5 billion, would provide additional support for the sector’s long-term growth.

The project follows a £1.25 billion joint investment commitment from Tata Steel and the UK government, with Tata contributing £750 million and the government offering up to £500 million.

“This agreement will enable the transformation of our Port Talbot operations, helping decarbonize the UK and fostering economic growth in South Wales,” said T.V. Narendran, CEO and MD, Tata Steel, at the contract signing. He highlighted that the initiative aligns with the company’s goal of providing low-carbon steel solutions and supporting customers in meeting their sustainability targets.

The furnace will also help reduce Britain’s dependence on imported iron ore by maximizing the use of recycled scrap. In addition, Tenova will supply advanced ladle metallurgy furnaces to produce high-grade steel for UK manufacturers and global markets.

Paolo Argenta, Executive Vice President of Tenova, praised the collaboration, stating, “We are working with Tata Steel UK with exceptional transparency and cooperation, ensuring a successful project.”

(ET)