Case study: Industrial heat & high-temp electrification — a leading company's implementation and lessons learned

In September 2024, Tata Steel UK confirmed a 1.25 billion pound investment to replace its two coal-fired blast furnaces at Port Talbot with an electric arc furnace (EAF), marking the largest single-site industrial decarbonisation project in British history. The UK government committed 500 million pounds in public funding, and Tata Steel pledged the remaining 750 million pounds, with operations targeted for 2027. Industrial heat accounts for roughly 17% of the UK's total carbon emissions according to the Department for Energy Security and Net Zero (DESNZ, 2025), and steelmaking alone generates approximately 12 million tonnes of CO2 annually across UK facilities. For policymakers, compliance officers, and sustainability teams tracking net-zero commitments, the Port Talbot transition offers the most detailed real-world blueprint available for high-temperature industrial electrification at scale.

Why It Matters

The UK's legally binding target of net-zero greenhouse gas emissions by 2050, enshrined in the Climate Change Act 2008 (amended 2019), requires the near-complete decarbonisation of heavy industry. Industrial processes that require temperatures above 400 degrees Celsius, including steelmaking (1,500 to 1,700 degrees Celsius), cement production (1,450 degrees Celsius), and glass manufacturing (1,500 to 1,700 degrees Celsius), have historically been considered among the hardest sectors to abate. These processes rely on the combustion of coal, coke, and natural gas for both heat and chemical reduction reactions.

The UK Emissions Trading Scheme (UK ETS), which replaced EU ETS participation after Brexit, has pushed carbon prices to 45 to 65 pounds per tonne in 2025, increasing the operating cost penalty for emissions-intensive production by 15 to 25% compared to 2020 levels (UK ETS Authority, 2025). The Carbon Border Adjustment Mechanism (CBAM) being developed by the UK government, expected to take effect in 2027, will further erode the competitiveness of carbon-intensive domestic production against imports from jurisdictions without equivalent carbon pricing.

For compliance teams, the transition from blast furnace to EAF at Port Talbot demonstrates how a leading manufacturer navigates overlapping regulatory requirements: UK ETS obligations, Industrial Emissions Directive (IED) permits, Environmental Permitting Regulations, planning consent, and grid connection agreements. The case offers transferable lessons for any organisation facing mandatory decarbonisation of high-temperature processes.

Key Concepts

Electric arc furnace steelmaking uses electrical energy to melt scrap steel and direct reduced iron (DRI) in a refractory-lined vessel using graphite electrodes that generate temperatures exceeding 1,800 degrees Celsius. EAF production emits 0.4 to 0.6 tonnes of CO2 per tonne of crude steel when powered by low-carbon electricity, compared to 1.8 to 2.2 tonnes for the blast furnace-basic oxygen furnace (BF-BOF) route.

Grid capacity and connection refers to the electrical infrastructure required to supply the massive power demands of industrial electrification. A single large EAF draws 100 to 200 MW of instantaneous power, with annual consumption of 350 to 500 GWh, equivalent to the electricity demand of a city of 100,000 to 150,000 residents.

Scrap quality and feedstock determines output quality in EAF operations. Residual elements such as copper, tin, and nickel in recycled scrap contaminate the steel and limit the range of products achievable. High-quality flat steel products for automotive and construction applications require either premium sorted scrap or virgin DRI feedstock.

Workforce transition encompasses the retraining, redeployment, and redundancy management required when shifting from one production technology to another. BF-BOF and EAF operations require fundamentally different skill sets, with EAF operations demanding more electrical engineering and digital process control expertise.

What's Working

Tata Steel Port Talbot: Phased Shutdown and EAF Construction

Tata Steel UK's implementation plan demonstrates structured project execution. The company shut down Blast Furnace 4 in July 2024 and scheduled Blast Furnace 5 for closure by late 2024, with demolition and site preparation running in parallel with EAF construction. The phased approach allows continuous steel production at reduced capacity during the transition, maintaining supply to key UK customers in automotive, construction, and packaging sectors.

The EAF design, developed with engineering partner Danieli, targets a capacity of approximately 3 million tonnes of crude steel per year, making it one of the largest EAF installations in Europe. The facility will process a blend of domestically sourced scrap (approximately 60 to 70% of feedstock) and imported DRI (30 to 40%), with flexibility to increase DRI usage as green hydrogen-based DRI production scales globally. Energy consumption is projected at 400 to 450 kWh per tonne of liquid steel, with scope to reduce this to 350 to 400 kWh per tonne as operations optimise (Tata Steel UK, 2025).

CEMEX Rugby: Electric Kiln Pilot for Cement

CEMEX UK's Rugby cement plant launched a pilot programme in 2024 to test electric plasma kiln technology for clinker production, targeting partial replacement of the gas-fired rotary kiln that operates at 1,450 degrees Celsius. The pilot, supported by 4.3 million pounds from UK Research and Innovation (UKRI), demonstrated that plasma torches could deliver the required temperatures for clinker formation while reducing direct emissions by up to 30% in the treated fraction. The pilot treated 50 tonnes per day at target temperature, validating the thermal profile required for proper calcium silicate mineral formation. CEMEX plans to scale the system to handle 20% of Rugby plant throughput by 2028 (CEMEX UK, 2025).

Pilkington Greengate: Hybrid Electric Glass Furnace

NSG Group's Pilkington subsidiary installed a hybrid electric-gas float glass furnace at its Greengate facility in St Helens in 2023, increasing the proportion of electric heating from 10% to 40% of total thermal input. Float glass production requires consistent temperatures of 1,500 to 1,600 degrees Celsius to maintain the molten glass ribbon on the tin bath. The hybrid configuration uses submerged electric boost elements to supplement gas-fired crown heating, reducing natural gas consumption by 35% and CO2 emissions by approximately 27% per tonne of glass produced. The installation cost 18 million pounds, with annual gas savings of 3.2 million pounds at 2024 gas prices, yielding a projected payback period of 5.6 years (NSG Group, 2024).

What's Not Working

Grid Connection Delays and Capacity Constraints

The Port Talbot EAF requires a grid connection upgrade capable of delivering 200 MW of firm power. National Grid Electricity System Operator (NGESO) initially estimated a connection date of 2029, two years beyond Tata Steel's operational target of 2027. Negotiations between Tata Steel, NGESO, and the Welsh Government resulted in an accelerated connection pathway, but the experience highlights a systemic challenge: the UK's grid connection queue contained over 700 GW of projects awaiting connection as of mid-2025, with average wait times of 10 to 15 years for large industrial connections (Ofgem, 2025). Industrial electrification projects compete with renewable generation, battery storage, and data centres for limited transmission capacity.

Workforce Displacement Concerns

The transition from BF-BOF to EAF at Port Talbot will reduce the workforce from approximately 4,000 to 1,500 direct employees, a net loss of 2,500 jobs. Tata Steel announced a Transition Board with 100 million pounds allocated to retraining, redeployment, and community support, but the Unite and Community trade unions have criticised the pace and scale of redundancies. EAF operations require fewer workers but demand different skills: electrical systems maintenance, digital process control, scrap quality assessment, and ladle metallurgy. The skills gap between existing blast furnace operators and EAF requirements has proven wider than initial assessments suggested, with retraining programmes requiring 12 to 18 months rather than the originally planned 6 to 9 months.

Product Quality Limitations

EAF steelmaking using recycled scrap faces inherent quality limitations. Residual copper and tin levels in UK-sourced scrap average 0.20 to 0.35% and 0.015 to 0.025% respectively, above the thresholds required for automotive exposed panels (copper <0.10%, tin <0.010%). This restricts EAF output to construction-grade and lower-specification products unless premium sorted scrap or DRI dilution is used. Tata Steel's solution of blending DRI feedstock adds 80 to 120 pounds per tonne to raw material costs compared to domestic scrap, partially offsetting the emissions reduction benefit. The UK currently has no domestic DRI production, meaning all DRI must be imported from facilities in Sweden (SSAB/HYBRIT), the Middle East, or North America.

Key Players

Established Companies

• Tata Steel UK: Operating the UK's largest integrated steelworks at Port Talbot and leading the country's highest-profile industrial electrification project with a 1.25 billion pound investment in EAF technology.
• CEMEX UK: Testing electric plasma kiln technology at its Rugby cement plant with UKRI backing, targeting partial electrification of clinker production.
• NSG Group (Pilkington): Implementing hybrid electric-gas float glass furnaces at facilities in St Helens, demonstrating 35% gas reduction in high-temperature glass production.
• Danieli: Italian engineering firm providing EAF design, equipment supply, and commissioning services for the Port Talbot project, drawing on experience from over 250 EAF installations worldwide.

Startups and Innovators

• Electra: US-based startup developing low-temperature iron electrowinning technology that produces iron at 60 degrees Celsius rather than 1,500 degrees Celsius, potentially eliminating the need for high-temperature processing entirely.
• Calix: Australian cleantech company commercialising electric kiln technology for cement and lime production, with a pilot facility operating in Belgium since 2023.
• Boston Metal: Developing molten oxide electrolysis for steel production, which uses electricity to directly reduce iron ore without carbon-based reductants.

Investors and Funders

• UK Government (DESNZ): Committed 500 million pounds to the Port Talbot transition and operates the Industrial Energy Transformation Fund (IETF), which has allocated over 500 million pounds across multiple rounds to industrial decarbonisation projects.
• UK Infrastructure Bank: Providing concessional finance for grid upgrades required to support industrial electrification, with 1.5 billion pounds deployed to energy infrastructure projects since 2021.
• Breakthrough Energy Ventures: Investing in next-generation industrial heat technologies including Boston Metal and other high-temperature electrification startups.

KPI Benchmarks

Metric	BF-BOF Baseline	EAF Target	Best Practice
CO2 per tonne crude steel	1.8-2.2 t	0.4-0.6 t	0.2-0.3 t (green H2 DRI + EAF)
Energy consumption (GJ/t)	18-22	6-9	5-7
Electricity demand (kWh/t)	50-100	400-500	350-400
Water consumption (m3/t)	25-35	3-6	2-4
Production workforce (per Mt)	1,200-1,500	400-600	300-450
Scrap utilisation rate	10-25%	60-80%	90-100%
Capital cost (GBP/t annual capacity)	600-900	300-450	250-350

Action Checklist

• Conduct a comprehensive grid capacity assessment with the local distribution network operator and NGESO at least 36 months before planned electrification commissioning
• Engage with the UK ETS Authority and Environment Agency early to understand permit modification requirements for transitioning from combustion-based to electric heating
• Develop a detailed feedstock strategy addressing scrap quality, DRI sourcing, and residual element management for target product specifications
• Establish a workforce transition board with trade union representation, allocating a minimum of 18 months for retraining programmes before technology changeover
• Commission an independent lifecycle assessment comparing BF-BOF and EAF routes using site-specific electricity grid carbon intensity projections through 2035
• Negotiate power purchase agreements (PPAs) with renewable generators to lock in long-term electricity costs and ensure low-carbon credentials for Scope 2 reporting
• Apply to the Industrial Energy Transformation Fund and other DESNZ funding programmes during early project development, as application-to-award timelines average 12 to 18 months
• Implement real-time energy monitoring and process optimisation systems from commissioning day one to track kWh-per-tonne performance against design targets

FAQ

Q: How does the carbon intensity of EAF steel compare to BF-BOF when using UK grid electricity? A: The UK grid carbon intensity averaged 132 gCO2/kWh in 2024 and is projected to fall below 50 gCO2/kWh by 2030 as offshore wind and nuclear capacity expand. At 132 gCO2/kWh, an EAF consuming 450 kWh per tonne produces approximately 0.06 tonnes of Scope 2 CO2 per tonne of steel from electricity alone, plus 0.3 to 0.5 tonnes from electrode consumption, lime calcination, and natural gas used in ladle metallurgy. Total EAF emissions of 0.4 to 0.6 tonnes per tonne compare favourably to 1.8 to 2.2 tonnes for BF-BOF. By 2030, with grid decarbonisation, total EAF emissions should fall to 0.25 to 0.4 tonnes per tonne.

Q: What policy mechanisms are available to support industrial electrification in the UK? A: The primary mechanisms include: the Industrial Energy Transformation Fund (grants covering 40 to 60% of eligible project costs up to 30 million pounds per project); the UK ETS, which creates a price signal of 45 to 65 pounds per tonne of CO2; Contracts for Difference for industrial decarbonisation (announced in 2024) that guarantee a strike price for low-carbon production; and the proposed UK CBAM, which will level the playing field against carbon-intensive imports. Companies should also explore Climate Change Agreements, which provide reduced Climate Change Levy rates in exchange for energy efficiency commitments, and the British Business Bank's green finance products.

Q: Can EAF steelmaking fully replace blast furnace production for all product types? A: Not without additional measures. EAF using 100% recycled scrap produces steel suitable for construction rebar, structural sections, and merchant bar, but residual tramp elements (copper, tin, nickel) limit suitability for automotive exposed panels, tinplate for packaging, and electrical steels. Producing these premium grades via EAF requires either ultra-premium sorted scrap (which commands a 40 to 80 pound per tonne premium over standard grades) or dilution with DRI or hot briquetted iron (HBI). Tata Steel's Port Talbot strategy of blending 30 to 40% DRI with scrap addresses this limitation but depends on imported DRI supply chains that are still scaling globally.

Q: What are the main risks to the Port Talbot project timeline? A: The three primary risks are: grid connection delays, as the 200 MW connection requires transmission reinforcement that NGESO must coordinate with ongoing grid upgrade programmes; planning and permitting timelines for demolition, construction, and environmental permits, which require sequential approvals from Neath Port Talbot County Borough Council and Natural Resources Wales; and global supply chain constraints for EAF equipment, as demand for large-format electric arc furnaces is surging simultaneously across Europe, with Danieli and other OEMs reporting order backlogs extending 24 to 36 months.

Sources

• Department for Energy Security and Net Zero. (2025). Industrial Decarbonisation Strategy: 2025 Progress Update. London: DESNZ.
• Tata Steel UK. (2025). Port Talbot Transition Programme: Project Overview and Implementation Plan. Port Talbot: Tata Steel UK Ltd.
• UK ETS Authority. (2025). UK Emissions Trading Scheme: Market Report and Carbon Price Analysis 2024-2025. London: UK Government.
• Ofgem. (2025). Electricity Network Connections Reform: Progress Report. London: Office of Gas and Electricity Markets.
• NSG Group. (2024). Pilkington Float Glass Hybrid Furnace Technology: Performance Report. St Helens: NSG Group.
• CEMEX UK. (2025). Rugby Cement Plant Electric Kiln Pilot: Phase 1 Results Summary. Rugby: CEMEX UK Operations Ltd.
• World Steel Association. (2025). Steel Statistical Yearbook 2025: Global Production Routes and Energy Benchmarks. Brussels: worldsteel.
• UK Infrastructure Bank. (2025). Annual Report and Accounts 2024-2025. Leeds: UK Infrastructure Bank.