Tata Steel UK and JCB have signed a Memorandum of Understanding for the supply of low CO2 (‘green’) steel. Under the agreement, Tata Steel will supply the British construction equipment manufacturer with green steel from Port Talbot after completing its transformation plans. JCB, which maintains a close focus on carbon reduction in its manufacturing and equipment, will integrate the steel into its machinery range.

This is the first supply agreement Tata Steel UK has made since announcing the £1.25 billion joint investment with the UK government to transition to high quality, low CO2 steel production in South Wales. The project includes building a new three million tonne per year state-of-the-art electric arc furnace (EAF),one of the largest in the world, offering a lower CO2 alternative to the traditional blast furnace method.

The EAF will turn UK sourced scrap into new high quality steel, removing the need to ship millions of tonnes of iron ore and coal from across the world. Tata Steel’s plans will cut the site’s CO2 emissions by up to 90 per cent and UK’s overall carbon emissions by about 1.5 per cent.

JCB has led the way in decarbonisation in its industry, starting with its Road to Zero programme in 2010. It has achieved many industry milestones, such as developing the first ever electric mini digger in 2018, creating the first hydrogen powered machine in 2021 and continuously expanding its range of fully electric powered equipment. It is currently putting the world’s first construction machines powered by hydrogen combustion engines through rigorous testing.

Tata Steel intends to make Port Talbot one of Europe’s premier centres for green steelmaking. Seventy five per cent of the raw materials required will be sourced from the UK, up from ten per cent today, helping to maintain the country’s self-sufficiency in steel and making steel production more resilient to global events.

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