London, July 15 -- Tata Steel officially broke ground on the UK's largest low-carbon steel plant at Port Talbot in Wales, marking the start of construction of a new electric arc furnace (EAF) that is central to the company's green transformation agenda in Britain.

The groundbreaking event was attended by Tata Group Chairman N Chandrasekaran, the company said in a statement.

With a capital investment of GBP 1.25 billion, the project will replace coal-fired blast furnaces with scrap-based electric arc furnaces, which Tata Steel says can reduce carbon dioxide emissions by up to 90%.

The UK government is supporting the project with GBP 500 million in funding, as part of an agreement signed in 2023.

The electric arc furnaces are slated to ...