Tata Steel signs major contract for green steelmaking technology
by David Fleschen
Tata Steel has announced a significant step forward in its efforts to decarbonize steel production, signing a contract with Tenova, a global leader in metals technology. The agreement will see the delivery of an advanced electric arc furnace (EAF) and additional equipment to Tata Steel's Port Talbot site in Wales, UK. The new technology is expected to play a key role in reducing the site's carbon emissions by 90%, equivalent to a reduction of 5 million tonnes of CO₂ annually.
The electric arc furnace, which will be operational by the end of 2027, will have an annual steel production capacity of 3 million tonnes, similar to the current output of the site's blast furnaces. This shift will enable the use of scrap steel sourced domestically, reducing the UK's reliance on imported iron ore and enhancing the resilience of the nation’s manufacturing supply chains. Additionally, new ladle metallurgy furnaces will be installed to refine the molten steel, allowing Tata Steel to produce the more complex grades of steel required by manufacturers both in the UK and internationally.
Tata Steel's CEO and Managing Director, Mr. T.V. Narendran, emphasized the importance of this development for both the company and the region. "This agreement will transform our Port Talbot site, supporting the UK's decarbonization efforts and creating economic opportunities in South Wales," he stated. "This is a major step towards producing low-CO₂ steel and helping our customers meet their own carbon reduction goals."
The project is part of a larger £1.25 billion investment in green steelmaking, with Tata Steel contributing £750 million and the UK government providing up to £500 million. UK Business and Trade Secretary Jonathan Reynolds highlighted the strategic importance of the partnership. "This deal reflects our commitment to securing the future of UK steelmaking," he said. "Technologies like those provided by Tenova are essential to decarbonizing the industry, creating jobs, and ensuring long-term stability for steelworkers in South Wales."
Paolo Argenta, Executive Vice President of Tenova, expressed confidence in the collaboration, noting that the partnership between Tenova and Tata Steel is based on a high level of transparency and cooperation.
The detailed engineering phase is already underway, and additional equipment orders will soon follow for various upgrades, including the Hot Strip Mill and Casters, as well as new construction projects. Tata Steel is also in the process of submitting a planning application, with large-scale site work scheduled to begin in mid-2025.
This initiative marks a major milestone in Tata Steel’s transition to greener steel production and is expected to contribute significantly to the UK’s broader efforts to reduce carbon emissions.
Source and Photo: Tata Steel UK