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Tata Group Breaks Ground on £1.25 B Green Steel Project in Port Talbot

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Announcement 15 Jul 2025 12:32 PM IST Economic Times

TATA Group launches 1.25EDP Billion Green Steel Plant in UK

TATA Group has officially begun construction of  a 1.25 EDP billion green steel project at its Port Talbot facility in South Wales. TATA Group Chairman Natarajan Chandrasekaran led the groundbreaking ceremony, making a major step in the company’s commitment to sustainable manufacturing.

The project centers on a new electric arc furnace(EAF),designed to recycle scrap steel and significantly reduce  carbon emissions. Backed by 500 EDP million in UK government funding, the plant is expected to be operational by 2027 and will have the capacity to produce 3 million tonnes of low-carbon steel annually.

Once complete, the new EAF will replace  Port Talbot’s aging blast furnaces, cutting the site’s carbon emissions by approximately 90%. This translates to a reduction of 5 million tonnes of Carbon dioxide each year- 50 million tonnes over the next decade.

Chandrasekaran described the project as a milestone for British industry, combining economic resilience with climate responsibility. The initiative is expected to secure 5,000 jobs and reinforce Tata's long-term investment in the UK.

UK Business Secretary Jonathan Reynolds hailed the move as a transformative step for British steelmaking, aligning with the country’s broader decarbonization goals while preserving skilled employment.

Why This Matters:

  • GHG Reduction: A major stride toward decarbonizing one of Europe’s largest steel plants.
  • Economic Boost: Secures thousands of jobs and safeguards the future of UK steelmaking.
  • Strategic Transformation: Reflects Tata’s broader shift toward circular, low‑carbon economy.

This development marks one of the largest green investments in the UK steel sector, positioning Tata Steel as a leader in the global shift toward low-carbon industrial production.