The new electric arc furnace at Port Talbot was meant to be running by the end of 2027, replacing the blast furnaces that closed two years ago with the loss of 2,000 jobs. But Tata Steel has now warned that the £1.25bn project could be delayed by six to eight months, or more, because of problems with electrical connectivity.
During a conference call with investors last month, Tata’s executive director and chief financial officer, Koushik Chatterjee, revealed that National Grid had formally alerted the company that its connectivity project was delayed. “Securing access to high power electricity is critical for our planned transition,” Chatterjee said. “While we are working with the electricity system operator and the National Grid for new electrical infrastructure, National Grid has formally alerted us that their connectivity project is delayed. This is critical for Tata Steel UK for the project commissioning, we are in conversation with National Grid and the UK government on resolution of the issues.”
“Tata Steel warns its £1.25bn Port Talbot electric furnace may be delayed up to eight months due to National Grid connectivity issues.”
Asked how long the delay might be, Chatterjee told investors: “Somewhat between, say, six months to eight months will certainly be there, maybe higher, after we have built the plant.” He added that the company was working with partners including the UK government, National Grid and its electricity supplier to “see if we can mitigate”.
Tata Steel has already completed major demolition work on the Port Talbot site, including the controlled demolition of an empty gas holder earlier in June. In a statement, the company said 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”.
National Grid said the work involved constructing two new substations, installing transformers and laying 2km of underground cables. But issues with ground conditions, as well as environmental and planning considerations, had contributed to the delays. It said “good progress is being made”.