Tata Steel UK Partners with Tenova for EAF Project

Transforming Steel Production in Port Talbot

Tata Steel UK has officially contracted Tenova S.p.A. to provide a cutting-edge electric arc furnace (EAF) and other advanced steelmaking equipment for its facility in Port Talbot, Wales. This initiative marks a significant step toward the transformation of Tata Steel’s operations, moving from a blast furnace/basic oxygen furnace setup to a more sustainable EAF minimill configuration.

A Shift Toward Sustainability and Economic Development

This transition to recycled-content EAF production is expected to substantially lower greenhouse gas emissions, a move that has garnered positive attention from the government. However, the implementation of the EAF technology may result in the loss of up to 3,000 jobs due to the reduced labor intensity associated with EAF systems. T. V. Narendran, CEO and Managing Director of Tata Steel Ltd., emphasized the transformative potential of this agreement, stating it will not only aid the U.K.’s decarbonization efforts but also create economic development opportunities for South Wales. He highlighted the importance of making low-CO₂ steelmaking a reality in Port Talbot.

Major Milestone Achieved with Strong Collaborative Efforts

Tata Steel UK describes the agreement with Tenova as a crucial milestone in its endeavor to produce greener steel. The new EAF system is slated for commissioning in the latter half of 2027, with projections indicating a 90 percent reduction in the site’s steelmaking carbon emissions, translating to a decrease of approximately 5 million metric tons of CO₂ annually. Paolo Argenta, Executive Vice President at Tenova, expressed confidence in the project, citing unprecedented levels of transparency and cooperation between Tenova and Tata Steel UK. He noted that their global collaboration on similar projects has reinforced their strong partnership.

Maintaining Production Capacity and Advanced Technology

Despite the technological shift, Port Talbot will remain a high-output steel production facility. The EAF system is designed to have an annual capacity of 3 million metric tons, comparable to the output of the existing blast furnaces. Tata Steel plans to utilize scrap steel sourced from within the U.K., which will help reduce reliance on imported iron ore and enhance the resilience of the U.K.’s manufacturing supply chains. Tata Steel has announced that the Tenova partnership will bring a range of cutting-edge technology to the Port Talbot site, including ladle metallurgy furnaces, a hot strip mill, casters, a pickle line, and cranes. These advanced systems are expected to enhance operational efficiency and support the transition to EAF steelmaking.

Substantial Recycling Capabilities and Progress on Planning

Once fully operational, the EAF facility at Port Talbot is projected to recycle between 2 million and 2.5 million metric tons of U.K.-sourced scrap annually. The EAF system is designed to produce 450 metric tons per hour of liquid steel, equivalent to the output of the two existing blast furnaces at the site, marking a significant shift toward more sustainable practices. Tata Steel UK has successfully completed public consultations regarding its planning application and is actively collaborating with local authorities. The company aims to submit the formal application in November 2024, with plans to begin large-scale construction activities around July 2025.

Investment for a Greener Future

The procurement of the EAF equipment is backed by Tata Steel’s significant investment of nearly $980 million at the Port Talbot site, along with a commitment of an additional $650 million from the U.K. government, highlighting a shared vision for a sustainable steel industry.