India-based steelmaker Tata Steel has approached the UK government to discuss additional financial support for the transformation of its Port Talbot steelworks, as delays in securing the required electricity grid connection are pushing back the commissioning of its new electric arc furnace (EAF) and are expected to increase the overall cost of the project, according to media reports.
The company has held discussions with the UK Department for Business, Innovation, Science and Technology in recent weeks regarding a new multimillion-pound support package. The precise amount being sought has not been disclosed, though sources cited by Sky News indicated that the additional funding could amount to hundreds of millions of pounds.
Port Talbot EAF commissioning pushed back by grid connection delays
Tata Steel's Port Talbot transformation is based on a £1.25 billion investment, supported by a £500 million UK government grant, to replace conventional blast furnace-based steelmaking with EAF production.
The new furnace had initially been expected to start operations by early 2028. However, delays in securing sufficient electricity access for the EAF have pushed the anticipated commissioning date to late 2028 or early 2029.
Tata Steel is understood to have calculated that the longer implementation period, together with higher project costs and sales foregone while the new EAF remains unavailable, could significantly increase the financial cost of the transformation.
