Steel major Tata Steel Ltd on Tuesday (February 18) said Neath Port Talbot Council Planning Committee has approved Tata Steel UK’s proposal to install a state-of-the-art Electric Arc Furnace (EAF) in Port Talbot.

Backed by £500 million from the UK Government, the project aims to preserve 5,000 jobs and significantly reduce the site’s carbon footprint. The shift from traditional blast furnace steelmaking to EAF technology will cut on-site CO₂ emissions by 90%, equivalent to 1.5% of the UK’s total direct CO₂ emissions.

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.

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This 1.25-billion-pound 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.”

Business and Trade Secretary Jonathan Reynolds said, “This is a major step forward in securing a bright, long-term future for steel in South Wales, following the improved deal for Port Talbot’s transition we agreed with Tata Steel and the next phase of our Plan for Steel – unveiled last week.”

The planning application sought permission to construct an Electric Arc Furnace, two new Ladle Metallurgy Furnaces for secondary steelmaking, and supporting infrastructure.

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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. The site’s ageing iron and steelmaking assets—which included the harbour, coke ovens, sinter plant and blast furnaces—were closed last year.

In December the company signed a deal with JCB for the supply of green steel, and last month, the company appointed Sir Robert McAlpine as the project’s main work contractor. In October last year, Tata Steel appointed the world-leading metals technology manufacturer Tenova to supply the new furnace.

Shares of Tata Steel Ltd ended at ₹134.50, up by ₹0.15, or 0.11% on the BSE.