As part of its decarbonisation plan, the steel major is setting up the UK’s largest low-carbon EAF (electric arc furnace) project at Port Talbot replacing the non-operational blast furnace plant of similar capacity with an investment of 1.25 billion pounds.
In a virtual interaction, Narendran, who is also the MD of Tata Steel, said the project is on track and will be ready by 2028. But the power supply may start in 2029.
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Talks are underway with National Grid — the power supplier — to work out solutions if the power supply can start early as Tata Steel UK (TSUK) will have to conduct trials before operationalising the project.
“We are working with the power supplier to see if can we get some power supply before, because they are building the infrastructure. So if we can get one line, then we can do some of the trials before we get the complete supply. Once the plant is ready, we’ll also do the cold trials, etc. So, there is a plan being made to mitigate the impact of the delay in the power infrastructure,” he said.
Sharing his assessment, Narendran said as of now, 2028 is the year by when the project will be ready and by 2029 operations are expected to start.Read more: Tata Steel Q1 net profit beats estimates; approves Rs 33,873 crore capex
The CEO noted that major demolition works at the site have been completed, and fabrication and delivery of equipment are continuing at a pace. Securing access to higher-power electricity is critical for the planned transition.
The project — being built at 500 million pounds of government support — aims to reduce site-level CO2 emissions by 90 per cent — equivalent to 5 million tonnes annually.
In May 2024, Tata Steel signed 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.
As per information shared by Tata Steel, NESO (the National Energy System Operator) is a public body that manages the connection process, including the connection contract with TSUK. NESO also manages operations of the electricity grid in the UK.
National Grid Electricity Transmission (NGET) is a private company that builds, owns, and maintains the connection.
The Tata Steel Group is one of the world’s leading steel producers, with an annual crude steel production capacity of 35 million tonnes. It is also among the most geographically diversified steel companies globally.