Tata Steel: Port Talbot

Lord Fox Excerpts

Wednesday 7th February 2024 Lords Chamber

[Baroness Swinburne (Con)]

I can tell the noble Lord that, more broadly, the UK Government have provided substantial support for the economy of Port Talbot and south Wales, with further projects being developed. This includes the development of the Celtic Freeport in Port Talbot and Milford Haven, backed by up to £26 million of UK government funding, which will focus on low-carbon technologies. It aims to create 16,000 jobs by mid-2030. The Celtic Sea is also the prime location for the floating offshore wind centre that is being planned, which will also bring several thousand jobs. Meanwhile, the Swansea Bay city deal, which covers the Port Talbot area, is in the process of delivering a number of exciting developments across the region.

[Lord Fox (LD)]

One way to meet the justified need mentioned by the noble Lord, Lord Forsyth, to produce more virgin steel rather than from scrap is to use direct reduced iron technology that can be produced through an electric arc furnace. Last month, Tata Steel’s global chief executive told Parliament’s Welsh Affairs Committee that Tata would invest in DRI technology only if it could be guaranteed a good supply of first methane and then hydrogen. That is why he told that committee that Tata is building that plant in Holland and not in the United Kingdom. Can the Minister investigate how much money Holland is giving Tata to build that plant? Perhaps it could drive a harder bargain because with this technology comes more jobs.

[Baroness Swinburne (Con)]

I thank the noble Lord. The Port Talbot transformation project does not prevent further technologies being deployed over time. We are paying careful attention to the international developments, particularly the hydrogen and DRI systems, such as the Tata Steel project in the Netherlands. Ultimately, this technology has not yet reached commercial activity, but when it does reach that maturity, we will look at it closely.