Tata Steel Looking to Cut Carbon Emissions with Newest Arc Furnace

Tata Steel has announced a significant contract with Italy-headquartered Tenova, a metals technology multinational, to deliver a state-of-the-art electric arc furnace (EAF) as part of its green steelmaking initiative in the UK. This pact, signed last week for the Port Talbot site in Wales—recognized as the UK's largest steelworks—marks a crucial step towards achieving a 90% reduction in carbon emissions per year once the EAF is operational at the end of 2027.

As part of the agreement, Tenova will supply an EAF with an annual capacity of 3 million tonnes of steel, matching the output of the recently decommissioned blast furnaces at the site. The EAF will utilize scrap steel sourced from the UK, highlighting Tata Steel's commitment to local materials and sustainability.

UK Business and Trade Secretary Jonathan Reynolds commented on the partnership, noting that it exemplifies the government's commitment to revitalizing the UK steel industry. He emphasized that technology like Tenova's furnaces is vital for decarbonizing the steel sector, fostering skilled jobs, and ensuring economic stability for future generations of steelworkers in South Wales. Reynolds also mentioned an upcoming steel strategy aimed at providing long-term growth and viability for the sector, backed by an investment of up to GBP 2.5 billion.

This agreement follows a joint investment of GBP 1.25 billion confirmed by Tata Steel and the British government, with Tata Steel contributing GBP 750 million and the government up to GBP 500 million. Tata Steel's CEO and Managing Director, T V Narendran, highlighted that this landmark agreement will transform the steelmaking site, supporting the UK's decarbonization journey while providing economic development opportunities in South Wales. He affirmed that this initiative is a significant milestone in making low-CO₂ steelmaking a reality in Port Talbot, thereby aiding the UK in meeting its carbon reduction targets and assisting customers in achieving their sustainability goals.