Tata Steel Ltd has signed a £500 million grant funding agreement with the UK government for its £1.25 billion green steel project in Port Talbot.
This will allow Tata Steel to proceed at pace with the project to install an electric arc furnace at the steelworks in Wales. The new assets will reduce the UK’s entire industrial carbon emissions by 8% and Port Talbot’s by 90%, setting a benchmark in circularity using scrap.
The Indian steel major has already launched a public consultation on specific activities and is working closely with the authorities to apply for planning approvals by November, and commence large-scale site work around July.
The electric arc furnace is expected to be operational within three years. These will replace coal-powered blast furnaces, which are nearing the end of their effective life. An electric arc furnace uses an electric current to melt scrap steel or iron to produce steel, whereas blast furnaces use coke, a carbon-intensive fuel made from coal.
Alongside its planned £750 million investment, Tata Steel has deployed its global engineering and project capabilities behind this project, which will benefit from an additional £500 million in UK Government Grant Funding, the company said in its statement.
