Tata Steel begins construction of £1.25 billion Electric Arc Furnace in UK, aims to cut 5 million tonnes CO₂ annually

New Delhi: Tata Steel UK commenced construction of a £1.25 billion Electric Arc Furnace (EAF) at its Port Talbot site, with an aim to reduce carbon emissions by approximately 90 per cent or 5 million tonnes per year. The green steel project is supported by a £500 million investment from the UK government and is expected to be commissioned by the end of 2027.The groundbreaking ceremony was attended by Tata Group Chairman Natarajan Chandrasekaran, Tata Steel CEO and MD T.V. Narendran, and Tata Steel UK CEO Rajesh Nair, along with UK government ministers.Once operational, the new EAF will melt UK-sourced scrap steel to produce up to 3 million tonnes of steel per year. It will be one of the largest electric arc furnaces globally. The project also includes new ladle metallurgy facilities and infrastructure upgrades, with partnerships from technology providers including Tenova, ABB and Clecim.Sir Robert McAlpine has been appointed as the main contractor, supported by a regional supply chain including Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd and Systems Group.“This is an important day for Tata Group, Tata Steel and for the UK. Today’s groundbreaking marks not just the beginning of a new Electric Arc Furnace, but a new era for sustainable manufacturing in Britain,” Tata Group Chairman Natarajan Chandrasekaran said.“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.”UK Business Secretary Jonathan Reynolds said the project was part of the government’s Industrial Strategy and reaffirmed support for the domestic steel industry. “This government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible,” he said.Secretary of State for Wales Jo Stevens said, “The UK Government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with £500 million to secure its future in the town, along with £80 million to support workers and the wider community.”Welsh First Minister Eluned Morgan added, “Seeing spades in the ground today provides a tangible sign of Tata’s intention to continue producing steel in the area.”The UK Government has also announced a £2.5 billion investment under its Steel Strategy to support the domestic industry, maintain employment, and drive industrial growth.

The groundbreaking at Port Talbot marks a key milestone in Tata Steel UK’s decarbonisation strategy and long-term commitment to sustainable steel production.>