Tata Steel has achieved a major milestone in its transformation of the Port Talbot steelworks after signing a connection offer with the Electricity System Operator (ESO).The agreement involves National Grid building new electrical infrastructure capable of powering the 3.2 million-tonne electric arc furnace by the end of 2027.
Tata Steel UK’s CEO, Rajesh Nair, said: “I’m delighted we’ve signed this connection agreement with the ESO. This is a critical milestone in transforming our steelmaking operations in Port Talbot. This will help us replace our ageing and carbon-intensive blast furnaces with a state-of-the-art electric arc furnace capable of producing our customers’ most demanding steel products.”
“This agreement means we will have sufficient power for our new electric arc furnace and the capability in the longer-term to further strengthen our business.”
Industry Minister Alan Mak said: “This is another positive step towards securing the future of steelmaking in South Wales and the UK, and I'm pleased to see Tata Steel reach this milestone.
“Our support for the steel industry is unwavering, and our historic investment alongside our grid capabilities means we can look ahead to cleaner, greener steel production in years to come.
“Accelerating grid connection timescales is a top priority for government and we are working closely with Ofgem and the network companies to transform the electricity network at a scale and pace not seen for decades.”
Rajesh added: “Having access to higher-power electricity is a foundation stone for greener steelmaking, regardless of the technology choice. That’s why we’ve been working closely with the ESO and National Grid for a number of years on how to strengthen our power infrastructure.
“This agreement means we will have sufficient power for our new electric arc furnace and the capability in the longer-term to further strengthen our business.”
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For further information:
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Tim Rutter on +44(0)7850 990755 tim.rutter@tatasteeleurope.com
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Abigail Thomas on +44 (0)7972 575062 or Abigail.thomas@tatasteeleurope.com
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Will Thomas on +44 (0)7776 692746 or wthomas@headlandconsultancy.com
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Headland Public Relations tatasteel@headlandconsultancy.com
About Tata Steel UK
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The Tata Steel Group has been named one of the most ethical companies in the world and is among the top producing global steel companies with an annual crude steel capacity of 34 million tonnes.
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Tata Steel in the UK has the ambition to produce net-zero steel by 2045 at the latest, and to have reduced 30% of its CO2 emissions by 2030.
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Tata Steel is the largest steelmaker in the UK with primary steelmaking at Port Talbot in South Wales supporting manufacturing and distribution operations at sites across Wales, England and Northern Ireland as well as Norway, Sweden, France and Germany. It also benefits from a network of international sales offices around the world.
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Tata Steel employs more than 8,000 people and has an annual crude steel capacity of 5 million tonnes, supplying high-quality steel products to demanding markets, including construction and infrastructure, automotive, packaging and engineering.
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Tata Steel Group is one of the world's most geographically-diversified steel producers, with operations and a commercial presence across the world.
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The group recorded a consolidated turnover of ~US$30.3 billion in the financial year ending March 31, 2023.
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