Tata Steel begins construction of Electric Arc Furnace at UK plant, Chandrasekaran attends groundbreaking

The transformation project costs 1.25 billion pounds

Top steel maker Tata Steel on July 14 marked the official commencement of construction at UK’s largest low-carbon steel plant, hosting the groundbreaking of the new Electric Arc Furnace (EAF), which is seen as a key milestone in the green transformation of its Port Talbot project in Wales, a company statement said.

The event marking the commencement of construction of UK’s largest EAF is attended by Tata Group chairman N Chandrasekaran.

The project, which has a total capital expenditure of GBP 1.25 billion, will result in the replacement of coal-fired blast furnaces to scrap-based electric arc furnaces, which has the potential to cut carbon dioxide emissions by 90 percent, Tata Steel said.

Tata Steel has appointed a number of contractors and consultants for the project, with the electric arc furnaces expected to be commissioned by the end of 2027. The steel maker has already agreed to a power supply agreement with UK's National Grid for the electric arc furnaces, which are expected to produce 3 million tonne of steel per year.

The UK government will support the transformation project to the tune of GBP 500 million, with the initial agreement signed between the UK government and Tata Steel in 2023. The agreement, according to Tata Steel, secures around 5,000 jobs directly.

“At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership. This project is also part of Tata Group’s wider investment in the UK, across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country,” Chandrasekaran said in a statement.

UK's business secretary Jonathan Reynolds said the government provided support to the transformation project in order to secure a bright future for the UK's steel industry, with the funding being part of his government's industrial strategy.