Metamorphosis in Metal: Tata's Green Steel Leap

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Tata Steel Group's Global CEO, TV Narendran, unveils a pivotal shift from blast furnaces to 'green' steel through electric arc furnaces in the UK. Facing financial challenges and project delays, the £1.25 billion plan aims to secure a sustainable future by leveraging UK's scrap resources. Narendran asserts commitment, backed by £500 million UK Government funding, ensuring the transition by 2027. The move aligns with global trends towards low-carbon steelmaking, emphasizing Tata's dedication to transforming challenges into opportunities.


In a strategic move, Tata Steel Group's CEO, TV Narendran, outlines a transformative journey for the UK business. In a series of interviews with major media outlets, including BBC, ITV, Channel 4, Sky News, and Times Radio, Narendran articulates Tata's vision of transitioning from traditional blast furnaces to environmentally conscious electric arc furnaces.

Acknowledging the challenges faced over the last 15 years, Narendran empathizes with the difficult decision to shift from conventional steelmaking methods. He highlights the company's extensive efforts, including an investment of £5 billion, to sustain the business. However, recognizing the changing landscape of steel production globally, Tata Steel embraces the shift towards scrap-based steelmaking.

The proposed Smart Belt-conveyor Monitoring System by JFE Steel, leveraging AI and data science, aligns with the broader industry trends of embracing technological innovations for operational excellence. In the case of Tata Steel, the focus is on transitioning to electric arc furnaces, a move already underway in Europe.

Narendran explains that the decision is rooted in sustainability, emphasizing the utilization of scrap available in the UK instead of relying on imported iron and coal. While engaging in extensive discussions with unions and considering their proposals, Tata Steel faces a financial challenge. To keep the blast furnace running would incur an additional £600 million, coupled with a £200 million project cost and a substantial delay.

The £500 million funding from the UK Government serves as a crucial catalyst for Tata's ambitious plan. Narendran assures that the funding will be accessed when constructing the new plant, emphasizing the financial responsibility resting with Tata Steel for daily losses amounting to £1.5 million.

Responding to concerns about the future installation of the electric arc furnace, Narendran guarantees the commitment, expressing the company's eagerness to commence construction. The timeline, initially estimated at 5-6 years for permitting and upgrades, has been expedited, with expectations of the furnace being operational by 2027.

The potential import of steel during the transitional phase is addressed, with Narendran clarifying that it would be a temporary measure to meet customer demands. However, with the electric arc furnace in place, Tata Steel aims to be self-sufficient by 2027, eliminating the need for steel imports.

Addressing concerns about future electricity costs for the electric arc furnace, Narendran highlights the UK Government's assurance that energy costs will decrease in the coming years due to increased green energy potential.


As Tata Steel embraces a paradigm shift towards 'green' steel, the decision to transition from blast furnaces to electric arc furnaces reflects a commitment to sustainability and aligning with global trends. The strategic move, supported by UK Government funding, positions Tata Steel as a key player in the evolution of steelmaking, emphasizing a future built on innovation, environmental consciousness, and financial viability.

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