A steelworkers union said it would not back the decarbonisation of steelmaking at Port Talbot by switching it to an electric arc furnace model, as a funding deal between Tata and 海角视频 Government moves closer to sign off.
An agreement, which Sky News said could be confirmed in days, would see the Westminster administration providing £500m in financial support alongside a commitment of £700m from Indian conglomerate Tata, which owns the plant.
A phased moved to arc furnaces - which would recycle steel - would require several thousand less staff than currently employed under the fossil-fuel powered blast furnace steelmaking operation. The plant directly employs around 4,000. With its downstream operating, including at Shotton and Trostre in Wales, Tata employs 8,000 in the 海角视频.
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As Port Talbot has an ageing workforce, early retirement packages could be part of any significant head count reduction.
However, Alun Davies, national Officer for Community Union, the steel workers union, said: “The unions have not agreed any decarbonisation strategy for Port Talbot and Community Union does not support switching to an electric arc furnace model.
“There must be a full and meaningful consultation on all the options to decarbonise steelmaking and secure the future of every 海角视频 plant. Community Union will do everything within its powers to support our members and protect their jobs.”
In 2012 Port Talbot’s blast furnace four had its life extended to 2032. Blast furnace five will expire in 2026, following investment in 2018.
From a planning perspective, Tata would need to move quickly if it is to start a phased or complete arc furnace transformation, with arc furnace capacity ready to take over from blast furnace four.
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Another other option, which would also require significant investment, is to maintain the two blast furnaces, which use coking coal and iron ore to make steel, but employ carbon capture and storage technology - and use the carbon dioxide to provide power.
Tata would be looking for a level playing field with European competitors, on energy costs - particularly as arc furnaces would require huge levels of power.
Local MP (Aberavon) Stephen Kinnock said that arc furnaces were not the only option in decarbonising the plant and that hydrogen could be part of the mix.
A Tata Steel spokesman said: “Tata Steel is continuing to discuss with the 海角视频 Government a framework for continuity and decarbonisation of steelmaking in the 海角视频 amidst very challenging underlying business conditions, given that several of its heavy-end assets are approaching the end of life.
“Given the financially constrained position of our 海角视频 business, such significant change is only possible with government investment and support, as also seen in other steelmaking countries in Europe where governments are actively supporting companies in decarbonisation initiatives.”