New Green Hues Of Tata Steel U.K.

Ailing Port Talbot unit's transition to green steel set-up with 40% revival cost borne by Britain.

- NEVIN JOHN

TATA STEEL'S UK business, majorly the Port Talbot site, got a fresh lease of life after the British government approved a £500 million grant to the ailing steelmaker to build a 3MTPA green steel project. The scrap-to-steel project, which will use electric arc furnace (EAF), will come up at Port Talbot, replacing the existing two coal-based blast furnaces. According to Tata Steel executives, the £1.25 billion project will be completed within 36 months following regulatory approvals.

About 40% of the project cost will be through grants from the U.K. government. Tata Steel is now consulting the Unions on job cuts. About 3,000 of which are expected to be lost across Tata’s 8,000-strong U.K. workforce as the steelmaker shifts to less labourintensive EAF. The switch to EAF will help save £150-175 a tonne out of the cost of $660 per tonne. Carbon emission from