Tata Steel is seeking a discussion with the UK government over delays affecting electricity access for its 3.2 million tonne electric arc furnace project at Port Talbot, CEO T V Narendran said, highlighting a key infrastructure hurdle for the company’s planned shift to lower-emission steelmaking.
Narendran said Tata Steel was in conversation with the UK government to discuss what could be done to address the concerns. He also said there had been no delay on Tata Steel’s part in constructing the project, which involves an investment of 1.25 billion pounds.
The project is facing delays in securing the power supply required to operate the electric arc furnace. In August, Narendran had said Tata Steel UK was expecting to secure access to electricity for the furnace by 2029.
Tata Steel signed a connection offer with the Electricity System Operator in May 2024. Under the agreement, National Grid is to build new electrical infrastructure capable of supplying the 3.2 million tonne electric arc furnace by the end of 2027. The latest comments indicate that access to the required power remains a significant issue for the project’s timely implementation.
The Port Talbot project is being built with 500 million pounds of government support and is intended to reduce site-level carbon dioxide emissions by 90 per cent. Tata Steel has estimated the reduction at the equivalent of 5 million tonnes annually. The electric arc furnace will replace the site’s existing blast furnace-based production system, although the supplied report does not provide an updated operational schedule for the transition.
Asked whether Tata Steel had sought additional funds from the UK government, Narendran did not deny the possibility. He said it was too early to say where the discussions stood, but that the company was sharing its concerns with the government. The remarks were made on the sidelines of the 53rd National Management Convention organised by the All India Management Association.
The delay places the project’s delivery timeline alongside the availability of supporting grid infrastructure, rather than construction activity alone. The next stated step is a discussion between Tata Steel and the UK government on the concerns affecting implementation and the electricity connection. No revised completion date or additional funding arrangement was announced in the supplied report.
