Tata Steel Partners with Tenova to Deliver Electric Arc Furnace for Port Talbot Site

Tata Steel’s signing of a groundbreaking contract with Tenova, the global leader in metals technology-to design, supply, and install a state-of-the-art electric arc furnace and associated advanced steelmaking equipment for its Port Talbot site in Wales, UK, has been hailed as one of the defining moments of Tata Steel’s journey toward greener steel, aimed at dramatically curtailing carbon emissions on-site.

Tata Steel has signed a contract with Tenova

The electric arc furnace is expected to commence operations in late 2027. Based on estimates, the electric arc furnace will cut carbon steelmaking emissions from its current levels at Port Talbot by 90%, which translates into a whopping reduction of 5 million tonnes of CO₂.

The project will also feature the installation of Tenova-supplied ladle metallurgy furnaces, which can process molten steel in a way that allows the production of complex grades required both by UK and foreign manufacturers.

Mr T V Narendran, CEO and MD of Tata Steel Limited, who joined the signing of the contract in Port Talbot following the project’s board-level approval, said: “This landmark agreement will enable us to transform our steelmaking site that will not only support the UK’s decarbonisation journey but also provide economic development opportunities for South Wales.

“Today marks an important milestone in making low-CO₂ steelmaking a reality in Port Talbot as well as reducing the UK’s carbon emissions and supporting our customers with their own carbon reduction targets.”

Tata Steel and the UK government made the agreement with a £1.25 billion joint investment, with an investment of £750 million and £500 million by Tata Steel and the government respectively.

UK Business and Trade Secretary Jonathan Reynolds said: “This partnership follows in the footsteps of an improved deal between the Government and Tata Steel, and is further proof of our commitment to a bright future for UK steelmaking”.

Tata Steel announced a three to four-year decarbonization initiative in order to build an electric arc furnace at its Port Talbot site, where the company will produce steel from scrap. The 1.25 billion pound ($1.68 billion) project received $500 million in funding from the British government. Once the electric arc furnace is installed at the end of 2027, the company expects the project to cut steelmaking carbon emissions from the Port Talbot Works by 90 percent-from the current rate of 5 million tons of CO₂ a year, according to Tata Steel’s statement on Friday, as per Reuters.

Tenova’s furnace is a technology that is critical to decarbonising the industry, as it unlocks the potential to provide more job opportunity, creating economic stability for the future of steelworkers in south Wales, as per Mr. Jonathan.

Paolo Argenta, Executive Vice President for the Tenova Upstream Business Unit, said: “We are working with Tata Steel UK at an unprecedented level of transparency and cooperation, and we are confident this will lead to a successful project implementation. Tenova’s global collaboration with Tata Steel, including projects in other regions of the world, further reinforces our strong partnership.”

With detailed engineering currently underway, additional equipment orders for the Hot Strip Mill, casters life extension, a new Pickle Line, and construction management will be placed separately.The public consultation on the planning application has been completed, and Tata Steel is working closely with the authorities and is expected to submit the application in November this year, with large-scale on-site work expected to start around July 2025.

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