Tata Steel has secured an agreement with the National Grid to supply energy for new furnaces in South Wales. The deal includes building new electrical infrastructure to power a 3.2 million-ton electric arc furnace by the end of 2027. Tata Steel UK's CEO, Rajesh Nair, emphasized the importance of this development in transforming their steelmaking operations and replacing old, carbon-intensive blast furnaces with modern technology.

Following seven months of union discussions, Tata Steel confirmed plans to shut down two blast furnaces and invest £1.25 billion in the new furnace. Engineering advancements for the project are underway, with equipment orders expected by September 2024 and construction starting in August 2025.

Industry Minister Alan Mak hailed the agreement as a positive step for the future of UK steelmaking, highlighting the government's commitment to cleaner, greener steel production and improved grid connection timescales.