On Wednesday, Tata Steel Ltd inked a deal with the UK government for £500 million in grant funding towards their Port Talbot green steel project totaling £1.25 billion.

Tata Steel will be able to set up a cutting-edge electric arc furnace at the Port Talbot steelworks in Wales, thanks to the grant funding agreement with the UK government.

By safeguarding steel production in Port Talbot and preserving 5,000 jobs, the project will ensure that the UK maintains its autonomy in steel manufacturing.

On September 11th, Wednesday, Tata Steel Ltd penned a deal worth £500 million. This fresh asset shall diminish the UK's overall industrial carbon emissions by 8%, and Port Talbot's specifically by an astounding margin of 90%.

The required equipment, comprising of an electric arc furnace and ladle metallurgy furnaces, a new coil box and crop shear for the hot strip mill, cranes package as well as construction management and civil engineering will be ordered shortly by the company.

The organization has announced its commencement of a public consultation and is currently collaborating with the authorities in order to obtain necessary approvals by November. This will enable them to initiate extensive on-site work around July 2025.

Within three years, the electric arc furnace is anticipated to be in operation.

On Wednesday (August 28), Moody's Rating confirmed a stable outlook on Tata Steel and predicted that the company will enhance its profits during the next two fiscal years.

Moody's predicts that Tata Steel will have a consolidated EBITDA of approximately Rs.290 billion for the year ending March 2025 and an expected amount of Rs.380 billion in fiscal 2026, as opposed to their current figure of Rs.241 billion recorded during the financial period from 2023-24.