Tata Steel UK, subsidiary of Indian steel producer Tata Steel, has announced that it is continuing talks with the UK government over funding for the potential future decarbonization of the company’s Port Talbot plant. The funding is expected to total more than £500 million, according to the media reports.
The funding would be used to switch the steel production process at Port Talbot from the blast furnace route to electric arc furnace technology.
“Given the financially constrained position of our UK business, any significant change is only possible with government investment and support, as also seen in other steelmaking countries in Europe where governments are actively supporting companies in decarbonization initiatives,” Tata Steel stated.
A permanent closure of one of the two blast furnaces could result in thousands of job losses and further damage to the UK steel industry, as SteelOrbis previously reported.
The two blast furnaces at the Port Talbot plant, which are approaching end of life, annually produce around 3.6 million mt of liquid steel.