Tata Steel UK selects EAF system vendor

Tata Steel UK, the United Kingdom operation of India’s Tata Steel Ltd., says it has signed a contract with Tenova S.p.A. to “deliver a state-of-the-art electric arc furnace (EAF) and additional advanced steelmaking equipment” to the firm’s site in Port Talbot, Wales.

The global steel producer has been working with government and trade union groups throughout the decade to chart a path to convert the blast furnace/basic oxygen furnace complex in Port Talbot into an EAF minimill configuration.

While recycled-content EAF production will lower greenhouse gas (GHG) emissions in Port Talbot, which the government views favorably, the shift in technology will come at the expense of as many as 3,000 jobs once the less labor-intensive EAF systems are in place.

Regarding its contract with Italy-based Tenova, Tata Steel UK states, “This marks a significant milestone in the journey to produce greener steel in Port Talbot.”

The steelmaker says it anticipates the new EAF system will be commissioned in the second half of 2027 and says the switch “will reduce the site’s steelmaking carbon emissions by 90 percent, equivalent to 5 million metric tons of CO₂ a year.”

Port Talbot will remain a large-volume steel production plant, however. Tata Steel says Tenova will supply an EAF system with an annual capacity of 3 million metric tons, “similar to the output of the site’s blast furnaces.”

The steelmaker says intends to melt scrap steel “sourced from the U.K.,” adding, “The use of scrap will also significantly reduce the U.K.’s reliance on imported iron ore, strengthening the resilience of the U.K.’s manufacturing supply chains.”

Comments T. V. Narendran, CEO and managing director of global parent Tata Steel Ltd., “This landmark agreement will enable us to transform our steelmaking site that will not only support the UK’s decarbonization journey but also provide economic development opportunities for South Wales.”

Adds Narendran, “Today marks an important milestone in making low-CO₂ steelmaking a reality in Port Talbot as well as reducing the U.K.’s carbon emissions and supporting our customers with their own carbon reduction targets.”

“We are working with Tata Steel UK at an unprecedented level of transparency and cooperation and we are confident this will lead to a successful project implementation,” says Paolo Argenta, an executive vice president with Tenova. “Tenova’s global collaboration with Tata Steel, including projects in other regions of the world, further reinforces our strong partnership,” he adds.

Tata Steel UK says the purchase of the EAF equipment “has been made possible” thanks to its own nearly $980 million expenditure at the site and the U.K. government’s willingness to allocate another $650 million.

Says U.K. Business and Trade Secretary Jonathan Reynolds, “This partnership follows in the footsteps of an improved deal between the government and Tata Steel, and is further proof of our commitment to a bright future for U.K. steelmaking.”

Tata Steel says Tenova equipment and technology being supplied includes ladle metallurgy furnaces, a hot strip mill, casters, a pickle line and cranes.

The steelmaker says when operating at full capacity, its Port Talbot EAF site “will recycle 2 million to 2.5 million metric tons of U.K.-sourced scrap every year.”  The EAF system will be able to produce 450 metric tons per hour of liquid steel, adds the company, calling that “a similar amount of liquid metal as the two Port Talbot blast furnaces” produced.

Tata Steel UK says it has completed public consultation on the planning application and is “working closely with the authorities to submit the application in November 2024, with a view to commencing large-scale site work around July 2025.”