Tata Steel UK has been granted approval to deliver its electric arc furnace steelmaking in Port Talbot.
Supported by £500 million of funding from the government, the investment will preserve 5,000 jobs in the UK and reduce onsite emissions by 90% compared to previous blast furnace-based steelmaking.
That’s equivalent to 1.5% of the UK’s total direct carbon emissions.
Business and Trade Secretary Jonathan Reynolds said: “This is a major step forward in securing a bright, long-term future for steel in South Wales, following the improved deal for Port Talbot’s transition we agreed with Tata Steel and the next phase of our Plan for Steel – unveiled last week.
“Today’s news will provide security for Port Talbot’s green steel transition and help give Welsh steelmaking the certainty it needs to drive growth and attract investment, as part of our Plan for Change.”
The planning application sought permission to construct an Electric Arc Furnace, two new Ladle Metallurgy Furnaces for secondary steelmaking and supporting infrastructure.
An electric arc furnace uses electricity to melt predominantly scrap steel rather than requiring imported iron ore and coal.
The site’s ageing iron and steelmaking assets – which included the harbour, coke ovens, sinter plant and blast furnaces – were closed last year.
The move is a major milestone for Tata Steel’s transition towards green steelmaking.
Rajesh Nair, CEO of Tata Steel UK added: “We are very pleased to have secured approval to build sustainable steelmaking in Port Talbot. Amidst a challenging global market, this is a significant milestone for the project and we are committed to begin large-scale work on site this summer, ahead of the Electric Arc Furnace starting up from the end of 2027.”
