A £1.25bn electric arc furnace that was meant to breathe new life into Port Talbot's steelworks may be delayed by up to eight months because the National Grid cannot get the power to it in time.
Tata Steel has warned investors that problems with electrical connectivity could push back the project's completion, which was hoped to be by the end of 2027. The new furnace was supposed to replace the traditional blast furnaces that closed two years ago with the loss of 2,000 jobs.
“Tata Steel says its £1.25bn Port Talbot furnace may face up to eight months delay due to electrical connectivity problems”
The warning came during a conference call last month, when Tata's executive director and chief financial officer, Koushik Chatterjee, told investors: "Securing access to high power electricity is critical for our planned transition." He revealed that the National Grid had "formally alerted us that their connectivity project is delayed".
Chatterjee said the company was working with the UK government, the National Grid, and its electricity supplier to "see if we can mitigate". But when asked about the likely delay, he said: "Somewhat between, say, six months to eight months will certainly be there, maybe higher, after we have built the plant."
Tata Steel said in a statement that, as with many major projects, "timelines continue to evolve as detailed engineering, construction and infrastructure work progresses" and that it was "discussing potential adjustments to the commissioning timetable" with its partners "to deliver the project safely and as quickly as possible".
The National Grid acknowledged the delays, attributing them to ground conditions, environmental and planning considerations, though it said "good progress is being made". The work involves building two new substations, installing transformers, and laying 2km of underground cables.
Meanwhile, demolition work on the Port Talbot site continues. Earlier this month, Tata carried out a controlled demolition of an empty gas holder, a visible sign of the old steelmaking era making way for the new – if and when the power arrives.