Construction Industry News
Tata Steel has announced a contract with Italy-based Tenova to supply an advanced electric arc furnace (EAF) as part of its green steelmaking initiative in the UK. The landmark deal, signed last week for the Port Talbot site, Britain’s largest steelworks, aims to reduce carbon emissions by 90% annually once it becomes operational in late 2027.
Under the contract, Tenova will supply an EAF capable of producing 3 million tonnes of steel per year, comparable to the output of recently decommissioned blast furnaces, using scrap steel from the UK.
UK Trade and Business Secretary Jonathan Reynolds said: "This partnership follows an improved deal between the government and Tata Steel, underlining our commitment to a sustainable future for UK steelmaking. Technologies like Tenova's are crucial to decarbonising the industry, creating skilled jobs and ensuring economic stability for future generations of steelworkers in South Wales. Our forthcoming Steel Strategy will provide further certainty for the sector, supported by up to £2.5 billion for steel development."
This agreement is the result of a joint investment of £1.25 billion by Tata Steel and the UK Government, with Tata Steel contributing £750 million and the Government contributing up to £500 million.
T V Narendran, CEO and MD of Tata Steel Limited, said: “This milestone agreement will transform our steelmaking site, supporting the UK’s decarbonisation journey while delivering economic development opportunities for South Wales. Today marks a critical step towards making low carbon steelmaking a reality at Port Talbot, reducing the UK’s carbon emissions and supporting our customers in their decarbonisation efforts.”
Paolo Argenta, Executive Vice President at Tenova, expressed his confidence in the success of the project and pointed to the unprecedented level of transparency and collaboration with Tata Steel UK.
Tata Steel UK is currently undertaking detailed engineering work, with plans to order additional equipment for the Hot Strip Mill, caster life extensions, new pickle line and construction management. The company has completed public consultations for its planning application and aims to submit it next month, with the aim of commencing major works on the site around July 2025.
As the UK's largest steel producer, Tata Steel operates primary steel production at Port Talbot, supporting production and distribution in Wales, England, Northern Ireland and countries including Norway, Sweden, France and Germany.
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