Plans have been put forward by Tata Steel for the construction of a new electric arc furnace at the Port Talbot steelworks site. The submission of the planning application to Neath Port Talbot Council’s planning department in November comes after the closure of the site’s blast furnaces in September 2024, resulting in the loss of over 2,000 jobs. The proposed £1.25 billion project aims to establish a 3.2 million tonne capacity electric arc furnace in Port Talbot over the following years. Italian firm Tenova has already signed a contract to undertake the construction of the furnace.
The decision to shut down the blast furnaces means that going forward, the site will no longer produce “virgin steel” from scratch. However, the new electric arc furnace is anticipated to have an annual steel production capacity of 3 million tonnes by melting scrap steel. The implementation of the electric furnace is projected to reduce the site’s steel-making carbon emissions by 90%, equivalent to five million tonnes of CO₂ annually. In response to the submission of the plans, Rajesh Nair, CEO of Tata Steel UK, expressed his satisfaction, thanking all those who have been involved in the process.
Business and trade secretary Jonathan Reynolds also commended the progress, highlighting the significance of these plans in securing a sustainable future for steelmaking in south Wales. He emphasised the government’s commitment to aiding the industry’s decarbonisation efforts, referencing the forthcoming Steel Strategy supported by up to £2.5 billion in funding. Neath Port Talbot Council is set to conduct a review and consultation on the proposed project, with a decision expected in early 2025 and a potential completion date projected for 2027.
The development of the new electric arc furnace signifies an important transition for the Port Talbot steelworks site and has the potential to revitalise the local steel industry. The shift towards more sustainable steel-making practices aligns with broader environmental goals and showcases Tata Steel’s commitment to innovation and carbon reduction. The project’s approval and eventual implementation will not only create job opportunities but also contribute significantly to reducing carbon emissions, marking a positive step towards a greener future in steel production.