Tata Steel UK, a subsidiary of India-based steelmaker Tata Steel Limited, has announced that it has signed a £500 million grant funding agreement with the UK government for the company’s £1.25 billion green steel project at its Port Talbot plant. According to the project, the company will build an electric arc furnace at the plant.
The project will reduce the country’s entire industrial carbon emissions by eight percent, while emissions will decrease by 90 percent at Port Talbot. The furnace is expected to be operational within three years.
“With the UK government’s critical support, this complex and ambitious transformation of Port Talbot has the potential to make the plant one of Europe’s premier centers for green steelmaking,” T V Narendran, CEO of Tata Steel, said.
In addition, Tata Steel UK stated that it will stick to its plan to close current heavy end assets at its Port Talbot plant and restructure it, including the blast furnace No. 4 to be closed by the end of September, as SteelOrbis previously reported.