Tata Steel manager talks steel packaging emission reductions and warns of UK EPR price hikes

Tata Steel’s Electrifying Packaging Steel campaign decarbonizes steel production for the packaging sector using Electric Arc Furnace (EAF) technology. The company says that the EAF process can produce high-grade steel with the same quality, formability, and AA+ food safety standards as traditional methods. This makes the material suitable for packaging everyday products like baked beans, aerosols, and paint cans.

Packaging Insights speaks to Adrian Davies, marketing manager at Tata Steel UK, about the campaign and the effect of the UK’s packaging EPR on the steel industry. We also discuss the importance of decarbonizing the steel packaging industry, and the company’s upgraded facility in Wales, UK. 

What can you tell us about your Electrifying Packaging Steel campaign?

Davies: Tata Steel UK’s Electrifying Packaging Steel campaign showcases our commitment to a low-carbon future through the transition to EAF technology. From 2028, our new EAF in Port Talbot will produce high-grade steel for packaging, maintaining the same exceptional quality, formability, and AA+ food safety as traditional methods. 

Packaging customers are expected to begin trials in 2028, with full qualification by 2030. This is a major milestone in our sustainability journey. By 2030, packaging steel from our Trostre Works will contain at least 50% recycled content and deliver 50% lower carbon emissions, without compromising performance.

What impact do you expect the UK’s packaging EPR to have on steel packaging?

Tata Steel‘s Protact laminated steel is food-safe and optimized for can making (Image credit: Tata Steel).Davies: Under the UK’s packaging EPR, producers will face greater financial responsibility for the full packaging life cycle, including collection, sorting, and recycling. This could raise costs for steel packaging users unless offset by eco-modulated fees that reward recyclability — a potential advantage for steel compared to less sustainable alternatives.

Can you share some insights into the campaign’s technology?

Davies: The shift to Electric Arc Furnace technology will dramatically cut direct carbon emissions from 6.5 million metric tons to an estimated 1.5 million metric tons per year. Our EAF will allow us to produce packaging steel with at least 50% recycled content and 50% lower CO2 emissions. At Trostre, where we craft steel for essential items like food, drink, and aerosol cans, we’re driving progress toward a truly circular economy.

This innovation supports brands’ and retailers’ net-zero and sustainability goals. EAF-produced steel enhances steel’s naturally sustainable credentials — endlessly recyclable and easily recovered thanks to its magnetic properties — while reducing Scope 1, 2, and 3 emissions.

What challenges and opportunities arise when decarbonizing steel production for packaging applications?

Davies: One of the primary challenges is the transition from traditional blast furnace operations to EAF technology. This shift requires significant capital investment, extensive infrastructure upgrades, and a fundamental change in production processes. 

Ensuring the consistent quality of EAF-produced steel suitable for demanding packaging applications necessitates close supply chain collaboration and precise process control. Despite these hurdles, the benefits of adopting EAF technology are substantial. EAFs can reduce steelmaking emissions and dramatically increase the recycled content in steel, aligning production with regulatory expectations and consumer preferences for low-carbon, circular packaging solutions.

Tata Steel’s £1.25 billion (US$1.6 billion) investment in transforming its Port Talbot, Wales, site — supported by £500 million (US$665 million) from the UK Government — represents a landmark moment in UK industrial decarbonization. Central to this transformation is a partnership with Tenova, a global leader in sustainable steelmaking technologies. 

Tenova will supply an advanced EAF with an annual production capacity of 3 million metric tons, matching the output of the site’s existing blast furnaces. This EAF will melt primarily UK-sourced scrap steel, significantly reducing the need for imported iron ore and coal while strengthening the resilience of the domestic steel supply chain.

In addition to the EAF, Tenova will provide Ladle Metallurgy Furnaces, critical for refining the molten steel to meet the precise chemical and mechanical properties required for complex packaging applications. These secondary metallurgy facilities ensure that the high-quality steel produced can be used across a broad range of markets, domestic and export.

What effects of the upgraded facility do you expect to see? 

Tata Steel‘s upgraded Port Talbot facility will start operating in 2027 (Image credit: Tata Steel).Davies: Once operational in late 2027, the upgraded Port Talbot facility is expected to cut annual CO2 emissions by around 5 million metric tons, equivalent to 1.5% of the UK’s total direct emissions. It will also safeguard approximately 5,000 jobs and secure the long-term future of steelmaking in South Wales.

Another challenge is securing a stable supply of high-quality scrap steel, which is essential for EAF operation and must meet the purity and performance standards required by packaging manufacturers. Our shift to EAF will also significantly increase our need for UK-sourced steel scrap, supporting domestic recycling and reducing the country’s reliance on exporting scrap overseas.

Last year, for example, Tata Steel UK consumed around 0.5 million metric tons of steel scrap annually, resulting in approximately 17% recycled content. Under the EAF proposal, this will increase to around 2.5 million metric tons per year, sourced from the 7–8 million metric tons of steel scrap that the UK currently exports. This will enable us to achieve at least 50% recycled content for packaging steels, strengthening the circular economy for steel in the UK.

By prioritizing local scrap supply, we improve resource efficiency and sustainability, enhance supply chain resilience, and reduce transportation-related emissions. This transition aligns with broader industry and environmental goals, ensuring that UK steel production supports a more sustainable future.

Tata Steel is positioning itself as a leader in low-carbon steel production by investing in next-generation sustainable steel infrastructure. This transition not only supports the decarbonization of the packaging sector but also contributes to the UK’s broader climate and industrial strategy.