Tata Steel signs contract for green steelmaking technology

Steelmaker Tata Steel has signed a contract with Tenova – a world leading metals technology manufacturer – to deliver a state-of-the-art electric arc furnace (EAF) at its Port Talbot site in South Wales.

When it is commissioned from the end of 2027, the EAF will reduce the site’s steelmaking carbon emissions by 90%, equivalent to five million tonnes of CO₂ a year.

Tenova will supply an EAF with an annual capacity of 3 million tonnes of steel – similar to the output of the site’s blast furnaces – by melting scrap steel sourced from the UK. The use of scrap will also significantly reduce the UK’s reliance on imported iron ore, strengthening the resilience of the UK’s manufacturing supply chains.

T V Narendran, CEO and MD of Tata Steel, said: “This landmark agreement will enable us to transform our steelmaking site that will not only support the UK’s decarbonisation journey but also provide economic development opportunities for South Wales.”

The agreement has been made possible by the £1.25bn joint investment by Tata Steel and the UK Government, with the former investing £750 million and the latter up to £500 million.

UK Business and Trade Secretary Jonathan Reynolds said: “This partnership follows in the footsteps of an improved deal between the Government and Tata Steel, and is further proof of our commitment to a bright future for UK steelmaking.”