Tata Steel UK’s proposals for a £1.25 billion Electric Arc Furnace (EAF) based steel making facility at its Port Talbot site have been approved by Neath Port Talbot Council’s Planning Committee.
The decision paves the way for a new era of green steel making in Port Talbot after Tata closed its traditional blast furnaces in the town.
Tata Steel UK said the investment will preserve 5,000 jobs and cut on-site CO2 emissions by 90% compared to previous blast furnace-based steelmaking – equivalent to 1.5% of the UK’s total direct CO2 emissions.
The planning committee granted approval for the project subject to a long list of conditions and the signing of legal agreements which include securing long term ecological management and mitigation at the site.
While primary steelmaking at Port Talbot ended last September with the closure of the blast furnaces and the ‘heavy end’ of the plant, the new EAF will produce steel by effectively melting scrap steel using high intensity electric currents.
The Port Talbot EAF will be accompanied by two new ladle furnaces in which liquid steel produced by the EAF will be further processed. The new furnaces are due to start operating in 2027 with a crude steel capacity of 3m metric tonnes per year. Molten metal will be tapped from the EAF at a rate of 320 tonnes every 42 minutes.
Traditional steelmaking at Port Talbot used three main raw materials iron ore, coal and lime. Iron ore will not be required in EAF steelmaking and lime use will be much reduced. Coal will still be required as a reducing agent but in much smaller quantities.
The Tata proposals, described in a planning officers’ report as being of “national strategic importance”, will see the demolition of a number of existing buildings and structures within the current steelworks boundary alongside construction of the new EAF.
Tata Steel said in its planning application that since 2007 it had lost £4 billion at Port Talbot – the position deteriorating further after 2023 due to a leap in energy costs and “ageing assets at the site which are expensive to maintain and operate”.
Tata added in its submissions:
“EAF presents the most appropriate solution for the continued use of the Port Talbot site in comparison to alternative options. It will focus on recycling steel – the UK has a large surplus 8 million tonnes exported every year, which is more than any other country in the world – and with ultra-low emissions if the electricity supplied to EAF comes from renewable sources.”
The committee heard there will be a “significant reduction” in emissions to air from the steelmaking process through the transition to EAF steel production.
The Leader of Neath Port Talbot Council, Cllr Steve Hunt, said:
“Our primary focus in the move to less carbon intensive steel production at Port Talbot has been on mitigating the effect of the net loss of jobs on our communities here in Neath Port Talbot and further afield.
“Through the Tata Steel UK Transition Board, of which I am a member, we have access to up to £100 million – £80 million from the UK Government and £20 million from Tata Steel UK – which is being invested in skills and regeneration programmes for this area.
“The board and associated funding is being concentrated on immediate support for the people, businesses and communities directly affected by the transition to greener steelmaking and is being used to develop a plan for local regeneration and economic growth for the next decade.
“As the new £1.25 billion EAF at Port Talbot given planning permission today forms part of that plan we must now work together to ensure it is a success.”
In December Tata Steel UK signed a deal with JCB for the supply of green steel, and last month the company appointed Sir Robert McAlpine as the project’s mains works contractor. In October last year Tata Steel appointed the world-leading metals technology manufacturer Tenova to supply the new furnace.
Rajesh Nair, CEO of Tata Steel UK, said:
“We are very pleased to have secured approval to build sustainable steelmaking in Port Talbot. Amidst a challenging global market, this is a significant milestone for the project and we are committed to begin large-scale work on site this summer, ahead of the Electric Arc Furnace starting up from the end of 2027.
“This £1.25 billion investment is the most significant investment made in the UK steel industry in decades. The facility will secure high-quality steel production, preserve thousands of jobs and safeguard steel making in Port Talbot for generations to come.”
Secretary of State for Wales Jo Stevens said:
“This decision is a significant step forward, providing more certainty over Tata’s plans for the site and for the future of steelmaking in South Wales.
“As part of our improved deal with Tata Steel, we have provided £500 million to support the company’s transition to greener steelmaking.
“This is backed by a further £80 million which we are investing directly into the community to support individual steelworkers and their families, businesses in the supply chain and on the regeneration of Port Talbot as we drive future economic growth in the area.
“We promised that we would deliver for our steel communities, and through this investment and the Steel Strategy we are doing just that.”
