BBC Wales Business Correspondent, Huw Thomas, reports that Tata Steel has received approval from Neath Port Talbot planning committee to construct a £1.25 billion electric arc furnace at its Port Talbot steelworks. The company plans to begin construction in the summer, aiming for the furnace to be operational by early 2028. This new facility will primarily melt scrap steel, replacing the blast furnaces that were shut down in Port Talbot the previous year.
Tata Steel’s planning application highlighted significant financial losses of £4 billion in Port Talbot since 2007. The company believes that the new electric arc furnace will establish a financially and environmentally sustainable business model. To execute the project, Tata Steel has engaged contractor Sir Robert McAlpine, who will oversee the demolition of existing structures and the partial filling of an on-site lagoon. Additionally, new buildings such as the furnace complex, a fume and dust treatment plant, and a water treatment facility will be constructed.
The electric furnace’s operation will involve the melting of scrap steel, supplemented by other purer forms to produce specialized grades of the metal. Tata Steel anticipates that the furnace will have ultra-low emissions if powered by renewable energy sources. The company announced that JCB, a machinery manufacturer, has committed to purchasing “green” steel from the new furnace. By adopting this sustainable approach, Tata Steel aims to reduce carbon emissions by up to 90% compared to the previous blast furnace operations in Port Talbot.
Following the closure of the blast furnaces in Port Talbot, approximately 2,500 jobs were lost in south Wales, with an additional 300 expected in the future. Despite this, steel mills in Port Talbot continue to operate by processing imported steel slabs. These mills are poised to receive steel from the new electric furnace once it becomes operational in early 2028. Many former Tata Steel employees who were made redundant after the closure of the blast furnaces have since moved on from the company
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