Port Talbot is set for a new lease of life after plans for Electric Arc Furnace steelmaking were approved today.
The £1.25bn investment, which includes £500m government funding, will preserve 5,000 jobs and cut on-site carbon dioxide (CO2) emissions by 90% compared with previous blast furnace-based steelmaking, following the main plant’s closure at the end of September.
Source: Tata Steel UK
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.”
Business and Trade Secretary Jonathan Reynolds said, “Today’s news will provide security for Port Talbot’s green steel transition and help give Welsh steelmaking the certainty it needs to drive growth and attract investment.”
An Electric Arc Furnace uses electricity to melt predominantly scrap steel – of which there is an abundance in the UK – rather than requiring imported iron ore and coal.
In October last year Tata Steel appointed metals technology manufacturer Tenova to supply the new furnace.
Implementing Direct Reduced Iron and Electric Arc Furnace technology eliminates the need for coking coal, which reduces the carbon intensity of steelmaking. If hydrogen is used instead of natural gas, emissions can be reduced by up to 95%.
Green hydrogen is still in its early stages of development, and increased investment is crucial for its integration into the steel industry.
In the H2-DRI-EAF process, one tonne of steel requires nearly 300MW of electrolyser capacity operating around the clock, according to the Institute for Energy Economics and Financial Analysis.
“Currently, green hydrogen comes at a high cost, and there is a scarcity of Direct Reduction-grade iron ore. By judiciously allocating these two resources to green steel facilities, and with the backing of supportive yet rigorous regulations, the transition to green steel can continue to gain momentum,” it notes.
