Steelmaker Tata Steel has signed a contract with National Grid to build the power grid and energy infrastructure needed to convert its Port Talbot plant to green steel production, Bloomberg reported.
The agreement stipulates that National Grid will build a new electricity grid capable of supplying energy to the company’s electric arc furnace, which has a production capacity of 3.2 million tons per year, by the end of 2027.
In 2023, the UK agreed to provide up to £500 million of government support to convert and continue operating the country’s largest steel plant in Port Talbot, one of several significant subsidies designed to persuade companies to remain in the UK.
In April 2024, Tata Steel announced that it would go ahead with its planned £1.25 billion investment in building an electric arc furnace at the plant after months of national discussions with British unions. The company said that it will close blast furnace No. 5 at the plant by the end of June this year and furnace No. 4 by the end of September.
