Tata Steel plans to commission UK electric arc furnace unit by 2027

Tata Steel plans to begin construction of its low-carbon electric arc furnace (EAF) steelmaking facility in the UK in July 2025, with operations scheduled to begin in 2027, the company said in its financial year 2024–25 (FY25) annual report.

 

“Using recycled scrap, the new (Port Talbot plant) steelmaking facility will reduce the on-site carbon emissions by up to 90 per cent,” the company said in its annual report.

 

The EAF is scheduled to become fully operational by 2027, with an annual production capacity of 3.2 million tonnes of low-emission steel. The EAF-based steelmaking project is projected to cut more than 50 million tonnes of carbon dioxide emissions over the next ten years.

 

The company stated that the structural transition is being carried out alongside a major focus on cost rationalisation. The company aims to reduce its fixed costs from £762 million in FY25 to £540 million in the following year.

Performance and investment

“The recently acquired entity Neelachal Ispat Nigam Limited delivered a strong performance with ₹1,000 crore in EBITDA and positive free cash flows,” N Chandrasekaran, chairman, Tata Steel, said.

 

“On a consolidated basis, in FY2024–25, Tata Steel’s crude steel production reached 30.92 million tonnes, while deliveries grew to 30.96 million tonnes (an increase of 3.3 per cent and 5.3 per cent y-o-y, respectively), both marking new highs,” the chairman added. 

Climate goals

Tata Steel targets a 10–15 per cent reduction in emission intensity by 2030, compared to levels in FY2024–25.

 

Tata Steel is constructing a 0.75 MTPA scrap-based electric arc furnace in Ludhiana to address expected medium- to long-term demand for low-emission steel in India. The company is also evaluating technologies to decarbonise its value chain. In addition, it has launched India’s first Carbon Bank to convert carbon dioxide into value-generating assets for customers.

 

Tata Steel became the first Indian steel company to demonstrate end-to-end capabilities in developing hydrogen transportation pipes. “In January 2025, the company successfully developed and tested API X65 Electric Resistance Welded (ERW) pipes, using steel manufactured at its Kalinganagar plant and processed at Khopoli,” the company said. API X65 Grade pipes transport 100 per cent pure gaseous hydrogen under high pressure.

Tech

The company has deployed more than 558 artificial intelligence (AI) models in key areas including process control, predictive and prescriptive maintenance, procurement analytics, boulder detection at mining sites, and integrated operational management during FY25.

 

“Supply chain solutions like Compass in India and Nexus in Europe help streamline operations by providing better visibility of material flow through the supply chain to the customers. The Integrated Remote Operations Centre (i-ROC) empowers remote supervision and plant operations management,” the company said.