Tata Steel seeks talks with UK govt over Port Talbot EAF project delays

Tata Steel CEO T V Narendran said the company is seeking discussions with the UK government over delays affecting power supply for its 3.2-million-tonne electric arc furnace project at Port Talbot. The company said there was no delay in its construction

New Delhi: Tata Steel is looking to hold discussions with the UK government on issues affecting the timely implementation of the electric arc furnace (EAF) project at Port Talbot, the company’s CEO T V Narendran said.

The company official noted that there was no delay on Tata Steel’s part in the construction of the 3.2-million-tonne project, which is being set up at an investment of 1.25 billion pounds.

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“We are in conversation with the UK government to say let’s have a discussion on what can be done,” Narendran told PTI on the sidelines of the 53rd National Management Convention organised by the All India Management Association (AIMA).

He made the remarks while replying to a question on the future course of action for the UK project, which is facing delays in securing power supply.

In August, Narendran had said Tata Steel UK was expecting to secure access to electricity for its 3.2-million-tonne electric arc furnace by 2029.

In May 2024, Tata Steel signed a connection offer with the Electricity System Operator (ESO). The agreement involves National Grid building new electrical infrastructure capable of powering the 3.2-million-tonne electric arc furnace by the end of 2027.

The project, being built with 500 million pounds in government support, aims to reduce site-level CO2 emissions by 90 per cent, equivalent to 5 million tonnes annually.

On whether Tata Steel had sought fresh funds from the UK government, Narendran, without denying it, said, “It is too early to say where we are, but there is a conversation to share with them regarding concerns.”

On the outlook for the sector, he said that while international markets were still struggling, India was witnessing rising demand.

“Demand is strong and steel prices have started moving up over the last 6-8 weeks, which is good because coking coal prices have gone up 50-60 USD per tonne.”