Port Talbot's blast furnaces now belong to history but there is potential to transform the economy

The blast furnaces now belong to Port Talbot's past but the steel industry is no stranger to change and shifts in technology. Credit: ITV Cymru Wales

As one chapter of steelmaking in Port Talbot comes to an end, a sense of loss hangs over the plant, its workforce and the Port Talbot community. There is grief for the thousands of jobs being lost, a way of working coming to an end, and a loss of identity.

The blast furnaces now belong to Port Talbot's past but the steel industry is no stranger to change and shifts in technology.

So what could the future hold for this steelworks and the surrounding communities?

Part of that future will be built on the £1.25 billion investment by Tata and the UK Government in a new electric arc furnace. Plans are already underway to build what Tata describes as a green steel plant which will secure steelmaking on site for future generations.

Scrap metal will be melted in the electric arc instead of importing high-carbon iron and coal. This will reduce the carbon footprint of steelmaking by using an abundant resource: UK scrap, which currently gets exported. The new plant should be operational by 2028 but it will need far fewer workers.

Scrap metal will be melted in the electric arc instead of importing high-carbon iron and coal. Credit: ITV Cymru Wales

Its success, in terms of both profitability and lowering carbon, will depend on electricity. The ideal situation would be to use low-carbon electricity from floating offshore wind farms or eventually from hydrogen, but that technology and infrastructure is not in place yet.

In the shorter term, steel will be imported into Port Talbot for downstream processing until the electric arc furnace is built. Steel unions have argued this not only increases the carbon footprint of the steel but it also exports Welsh jobs.

The unions had argued for a slower transition to the blast furnaces being shut down so people would have a chance to retrain and regroup, but Tata insists it is the only way to secure steelmaking in Port Talbot for the future.

The hope is that offshore floating wind production in the Celtic Sea could provide the anchor for future jobs and prosperity here. There are plans for this low-carbon energy production to be centred around the ports of Milford Haven and Port Talbot which form the Celtic Free Ports. Offshore wind needs infrastructure, steel and services.

Part of that future will be built on the £1.25 billion investment by Tata and the UK Government in a new electric arc furnace. Credit: ITV Cymru Wales

The challenge is to produce and manufacture as many of those products here in Wales to gain the maximum economic benefit locally, creating jobs and prosperity. It's a huge task for the supply chain in terms of time and capacity, to be ready to make the most of these new opportunities.

Net Zero Industry Wales, the body spearheading Wales' shift to a lower-carbon future, says both governments need to work together at pace so these once-in-a-lifetime opportunities are not lost.

The body is arguing for some of the £100million transition fund to be directed towards companies in the supply chain so they can speed up their plans to embrace and develop new technologies.

Lower-carbon energy has the potential to transform the south Wales economy for a new generation.

The ideal situation would be to use low-carbon electricity from floating offshore wind farms or eventually from hydrogen. Credit: ITV Cymru Wales

Cheaper, greener power will attract investment and other companies to the region. However, Wales is operating in a global marketplace, and as Port Talbot steel has been exported around the world for decades, this region will need to act quickly to beat off other areas looking to transform their own economies.

Port Talbot is not alone. Other areas like Teeside, where steel has also formed the bedrock of the regional economy for decades, are having to change too. Like Tata, British Steel is closing its blast furnaces at Scunthorpe.

However there is hope, opportunity and optimism for the next chapter. Electric arc furnaces are the future but getting there is a long, painful road for those people and communities losing livelihoods today.