Tata Steel UK Gets Approval for Electric Arc Furnace Project in Port Talbot.

Neath Port Talbot Council’s Planning Committee has granted approval for Tata Steel UK’s plans to develop modern Electric Arc Furnace (EAF) steelmaking in Port Talbot.

Rajesh Nair, CEO of Tata Steel UK, described the approval as a significant milestone amid a challenging global market. He confirmed the company’s commitment to commence large-scale site work this summer, with the EAF set to begin operations by the end of 2027.

“The £1.25 billion investment marks the most substantial investment in the UK steel industry in decades. This facility will ensure high-quality steel production, preserve thousands of jobs, and safeguard steelmaking in Port Talbot for future generations,” Nair stated.

The project, supported by £500 million in UK Government funding, will help secure 5,000 Tata Steel UK jobs while reducing on-site CO2 emissions by 90% compared to previous blast furnace-based operations—equivalent to 1.5% of the UK’s total direct CO2 emissions.

Jonathan Reynolds, Secretary of Business and Trade, hailed the approval as a major step toward securing a sustainable future for steel production in South Wales. He emphasized that the agreement with Tata Steel, alongside the next phase of the UK’s Plan for Steel, will provide the stability needed to drive growth and attract investment.

“This decision ensures security for Port Talbot’s green steel transition and offers the certainty Welsh steelmaking needs to thrive,” Reynolds said.

Tata Steel UK has been actively preparing for the transition. In December, it signed a deal with JCB to supply green steel, and last month, it appointed Sir Robert McAlpine as the project’s main works contractor. Additionally, in October, the company selected Tenova, a global leader in metals technology, to supply the new furnace.

HBL