Published at December 19, 2024 by InfraJunction
Tata Steel has signed an agreement to supply green steel to British construction equipment manufacturer JCB. The steel will come from Tata Steel's Port Talbot plant once its transformation plans are completed.
JCB, known for its commitment to carbon reduction in manufacturing and equipment, will integrate the green steel into its machinery range.
This marks the first supply agreement Tata Steel UK has made since announcing a £1.25 billion joint investment with the UK Government. The investment aims to transition Tata Steel’s production to high-quality, low-CO2 steel in South Wales.
The project will involve the construction of a new electric arc furnace (EAF) with a capacity of 3 million tonnes per year. This will be one of the largest EAFs globally, providing a low-CO2 alternative to the traditional blast furnace method.
The electric arc furnace (EAF) will use UK-sourced scrap to produce new, high-quality steel. This process eliminates the need to import millions of tonnes of iron ore and coal from around the world.
Tata Steel’s transformation plans are expected to reduce the Port Talbot site’s CO₂ emissions by up to 90%. The overall carbon emissions in the UK could also decrease by approximately 1.5% as a result of these changes.
Anil Jhanji, the Chief Commercial Officer of Tata Steel UK, stated: “One of the key drivers in our transition plans is that our long-standing and loyal customers such as JCB need green steel to meet their own decarbonisation ambitions. They want to be supplied by a trusted partner making quality steel within the UK.
“This announcement that two of the UK’s largest manufacturers are working together to create a low-carbon supply chain is an important step in the UK’s transition to a circular economy.”
Wayne Asprey, Group Purchasing Director at JCB, added: “Tata Steel is a long-term supply partner for JCB and this agreement marks an essential next step in our journey towards supply chain decarbonisation. We are fully supportive of Tata Steel UK’s investment proposals and are pleased to be one of the first customers to endorse those plans by making this agreement to secure British-made green steel as soon as it is available.”
JCB has been a pioneer in decarbonizing the construction equipment industry, starting with its Road to Zero program in 2010. The company has achieved significant milestones, including the development of the first-ever electric mini-digger in 2018. In 2021, JCB created the world’s first hydrogen-powered construction machine. The company continues to expand its range of fully electric equipment. Currently, JCB is testing the world’s first construction machines powered by hydrogen combustion engines.
In October 2024, Tata Steel signed a contract with Tenova to supply a state-of-the-art electric arc furnace and other advanced steelmaking equipment for its Port Talbot site. The transformation of the site is set to begin in the summer of 2025.
Tata Steel aims to establish Port Talbot as one of Europe’s leading centres for green steel production. The £1.25 billion investment, which includes a UK Government grant of up to £500 million, is the largest capital investment in UK steel production in decades.
The project will increase the proportion of raw materials sourced from the UK to 75%, up from just 10% today. This shift will boost the country's self-sufficiency in steel and enhance resilience to global supply chain disruptions.
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