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Sparks Fly for Sustainability—Tata Steel Powers Up UK’s Green Furnace Revolution


Updated: July 14, 2025 13:30

Image Source: OneZero-F Analytics
Tata Steel UK officially began construction of a £1.25 billion Electric Arc Furnace (EAF) at its Port Talbot facility in Wales, marking a transformative step in the company’s green steel journey. The project is expected to cut carbon emissions by 5 million tonnes annually, representing a 90% reduction at the site and a major milestone in the UK’s industrial decarbonisation strategy.
 
Project Highlights
  • Total Investment: £1.25 billion
  • UK Government Support: £500 million
  • Annual Steel Capacity: 3 million tonnes using UK-sourced scrap
  • Carbon Reduction: ~5 million tonnes CO₂/year
  • Jobs Secured: 5,000 direct UK steel jobs
  • Technology Partners: Tenova, ABB, Clecim
  • Construction Lead: Sir Robert McAlpine, with regional firms including Systems Group, Andrew Scott Ltd, and others
Leadership Commentary
“This is not just the beginning of a new Electric Arc Furnace, but a new era for sustainable manufacturing in Britain,” said Natarajan Chandrasekaran, Chairman of Tata Group. UK Business Secretary Jonathan Reynolds added, “We are backing Welsh steelmaking with certainty for local jobs and communities.”
 
Strategic Impact
  • The EAF will replace traditional blast furnaces, enabling low-carbon steel production using scrap metal.
  • The project supports Tata Steel UK’s goal to achieve net-zero steel by 2045 and 30% CO₂ reduction by 2030.
  • It aligns with the UK Government’s £2.5 billion Steel Strategy, reinforcing long-term industrial sustainability.
Sources: ET EnergyWorld, The Hindu BusinessLine, HDFC Sky, Machinist.in, Evening Standard

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