Tata Steel to Begin Construction of Low-Carbon EAF Project in UK This July

Tata Steel is set to commence construction of its low•carbon electric arc furnace (EAF) steelmaking project in Port Talbot, UK, in July 2025. The initiative, backed by £500 million in UK government funding, marks a significant transition from traditional blast furnace operations to a more sustainable steel production process.  

 

Project Overview  

 

• The £1.5 billion EAF project aims to reduce carbon emissions and modernize steel production in the UK.  

• Tata Steel has received planning approval for the facility, with operations expected to begin by 2027.  

• The company is shifting from blast furnace•based steelmaking to an EAF process that utilizes locally available scrap, significantly lowering emissions.  

 

Strategic Shift in UK Operations  

 

• Tata Steel has exited steelmaking through its aging blast furnace assets in Port Talbot, transitioning to a downstream model.  

• The company now sources steel substrates from India, the Netherlands, and other external suppliers to maintain production.  

• A cost rationalization strategy is in place to reduce fixed costs from £762 million in FY2024-25 to £540 million in the coming year.  

 

Environmental and Economic Impact  

 

• The EAF process is expected to cut carbon emissions by 90 percent, aligning with global sustainability goals.  

• The transition supports the UK’s green steel initiative, ensuring a more environmentally friendly approach to steel production.  

• Tata Steel’s investment in modernizing IT infrastructure and optimizing operations will further enhance efficiency.  

 

Industry Perspective  

 

Tata Steel’s move toward low•emission steelmaking reflects a broader industry trend of adopting sustainable practices. The UK government’s financial support underscores the importance of green steel production in the country’s industrial future.  

 

With construction set to begin in July, Tata Steel’s EAF project represents a major step toward decarbonization and long-term sustainability in steel manufacturing.  

 

Sources: MSN, Economic Times, Business Standard, PTI.