Construction starts on Port Talbot green steel project
The UK government says 5,000 jobs have been secured as construction starts on Tata Steel’s electric arc furnace
The UK government says 5,000 jobs have been secured as construction starts on Tata Steel’s electric arc furnace (EAF) in Port Talbot.
The company axed around 2,800 jobs when it closed the blast furnaces at the site ahead of switching to a greener alternative.
The new EAF, which is set to be commissioned at the end of 2027, is expected to reduce Port Talbot’s carbon emissions by approximately 90%.
Tata says that's equivalent to 5 million tonnes of CO₂ per year - and it'll also secure high-quality sustainable steel production.
Business Secretary Jonathan Reynolds said:
“This is our Industrial Strategy in action and is great news for Welsh steelmaking backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come.
“This government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible.
"Our modern Industrial Strategy has set out how we’ll back the sector even further, including by slashing energy costs for firms like Tata Steel to level the playing field, as part of our Plan for Change.”
The start of construction is expected to reduce the site’s carbon emissions by around 90 percent.
Tata Steel signed a contract in October 2024 with Tenova to deliver an electric arc furnace and additional advanced steelmaking equipment for its Port Talbot site.
Tata Group Chairman Mr Chandrasekaran said:
“This is a proud day for Tata Group, Tata Steel and for the UK. Today’s groundbreaking marks not just the beginning of a new Electric Arc Furnace, but a new era for sustainable manufacturing in Britain. At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership.
“This project is also part of Tata Group’s wider investment in the UK, across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country.”
Secretary of State for Wales Jo Stevens said:
“The UK Government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with £500 million to secure its future in the town, along with £80 million to support workers and the wider community. Our Steel Strategy will also deliver up to £2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth.
“The construction of Tata’ s new furnace realises the promise we made to the community, while the development of floating offshore wind, plans for a Celtic Freeport and millions more for local regeneration all mean that Port Talbot has a bright future.”
The Assistant General Secretary of the Community steelworkers' union, Alasdair McDiarmid, said:
"This bittersweet day is a consequence of the devastating closure of the blast furnaces, but importantly a future for Port Talbot steelmaking is being secured. The workforce needs the Electric Arc Furnace project to be both a success and a turning point, and we look forward to playing our part to get the new furnace up and running.
"Today should represent the first step towards rebuilding our steel industry and creating new high-quality jobs for our steel communities. Going forward we must see further investment to develop and grow the business, both here in Port Talbot and across all the crucial downstream sites.
"It was also good to see the Secretary of State in Port Talbot today, and we will continue to hold talks with government on their plans to safeguard and co-invest in our steel industry. The UK needs a strong and resilient steel sector now more than ever, and steel should be the cornerstone of a national industrial strategy fit for the future."