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Construction Underway on £1.25 Billion Electric Arc Furnace at Port Talbot

Backed by a £500 million government grant, the project secures 5,000 jobs with commissioning planned for late 2027.

Overview

  • Construction crews broke ground on July 14 at Port Talbot for the new electric arc furnace in a ceremony attended by government ministers and Tata Steel leaders.
  • The UK government has provided a £500 million grant to underpin Tata Steel UK’s transition to low-carbon electric arc furnace production.
  • Tata Steel expects the new facility to cut carbon emissions at Port Talbot by roughly 90%.
  • Designed to melt up to 3 million tonnes of scrap steel annually, the furnace will produce finished steel without relying on virgin ore.
  • The scheme finalizes the shift from blast-furnace operations after the plant’s last furnace closed in September 2024, which had resulted in about 2,500 job losses.