Tata Steel has signed a GBP 500 mln (USD 654 mln) Grant Funding Agreement with the UK Government to support its GBP 1.25 bln (USD 1.63 bln) green steel project at the Port Talbot steelworks in Wales.
The project, which includes installing a state-of-the-art Electric Arc Furnace (EAF), is the largest investment in the UK steel industry in decades. It will preserve 5,000 jobs, secure the UK’s steelmaking capacity, and reduce the country’s industrial carbon emissions by 8pct, with a 90pct reduction at Port Talbot, Tata Steel said in a press release.
Tata Steel is investing GBP 750 mln (USD 981 mln) alongside the government’s grant. Basic engineering is complete, and equipment orders for the EAF, ladle metallurgy furnaces, and hot strip mill upgrades will be placed soon. Public consultations are underway, with planning approvals expected by November 2024, and large-scale site work scheduled to begin by July 2025. The EAF is expected to be operational within three years, the company said.
The company has smoothly closed Blast Furnace #5 and the Morfa coke ovens, with plans to shut down Blast Furnace #4 by the end of September. Supply chain arrangements will ensure customer service during the transition to the EAF.
Tata Steel has worked with the UK Steel Committee and trade unions to finalise a support package for employees, offering voluntary redundancy, re-skilling, and re-training options for those at risk of compulsory redundancy, the company added.
1 USD / 0.76 GBP
