Port Talbot: Tata Steel electric furnace approved by planners

Tata Steel's plan to build a £1.25 billion electric arc furnace at its Port Talbot steelworks has been approved by the planning authority. The Neath Port Talbot Council planning committee approved the plans for construction to begin this summer, with the electric arc furnace expected to be operational by early 2028. This project is crucial for the future development of Tata Steel in the UK.

The electric arc furnace (EAF) will primarily melt scrap steel and replace the two blast furnaces that were closed in Port Talbot last year. In its planning application, Tata Steel stated that it had lost £4 billion in Port Talbot since 2007, and the new EAF will create a "financially and environmentally sustainable" business. This move aims to reverse the company's losses and enhance its competitiveness in the steel market.

Tata Steel has appointed contractor Sir Robert McAlpine to deliver the project, which will involve demolishing existing buildings and partially filling a lagoon on the site. The new buildings will include the furnace complex, a fume treatment plant, and water treatment facilities. In addition, a scrap processing plant will be required. The electric arc furnace will primarily melt scrap steel, with the addition of other purer forms of metal to produce specialized grades of steel.

When asked about the potential impact of US tariffs on steel imports, Tata Steel UK head Rajesh Nair said it was a "significant" issue and the company was "still watching that space." He stated, "Ideally, we want a level playing field where everyone competes in the right way." The new electric arc furnace, if its energy supply comes from renewable sources, will achieve ultra-low emissions.

Tata Steel has stated that machinery manufacturer JCB has committed to purchasing "green" steel from the new electric arc furnace. The project will reduce carbon emissions by up to 90% compared to the previous blast furnace operations in Port Talbot. Tata Steel has repeatedly stated that it was losing £1 million per day while keeping the blast furnaces running. The closure of the blast furnaces, along with the rest of the heavy industrial steel production in Port Talbot, has resulted in approximately 2,500 job losses in South Wales, with a further 300 expected. Many of those made redundant have already left the company since the last blast furnace was closed in September 2024.

The steel mills in Port Talbot are still operating and are processing imported steel billets. These will eventually be supplied by steel produced by the new electric arc furnace. This move marks Tata Steel's transition to a more sustainable and environmentally friendly method of steel production, aligning with global efforts to reduce carbon emissions.