Tata Steel has secured a £500 million grant from the UK Government for its ambitious £1.25 billion green steel project in Port Talbot, marking a significant milestone in the UK’s steel industry.

What Happened: The agreement will enable the installation of a cutting-edge Electric Arc Furnace at the Port Talbot Steelworks in Wales, a move that is expected to revolutionise steelmaking in the UK.

The £1.25 billion project, the most significant investment in the UK steel industry in decades, will ensure the continuity of steelmaking in Port Talbot, protect the UK’s steel sovereignty, and retain 5,000 jobs. The new assets are projected to decrease the UK’s total industrial carbon emissions by 8% and Port Talbot’s by a whopping 90%.

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In addition to a planned £750 million investment, Tata Steel will also gain from an extra £500 million in UK Government Grant Funding. The company has finished basic engineering and will soon place orders for equipment. The Electric Arc Furnace is anticipated to be operational within three years.

“With the UK government's critical support, this complex and ambitious transformation of Port Talbot has the potential to make the plant one of Europe's premier centres for green steelmaking,” said T V Narendran, Tata Steel CEO.

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