Tata Steel is to invest £53m in energy-efficient cooling at its Port Talbot steelworks.
The company says the investment will reduce its external power requirements by about 15% and contribute towards making the site self-sufficient in energy.
The main project work will be carried out in the second half of next year along with the £185 million rebuilding of Port Talbot’s No 4 blast furnace that Tata Steel announced eight months ago.
The investment also follows the £60 million BOS plant Energy Recovery project, which was completed in May last year.
Chair of the Multi-Unions at Port Talbot, David Ferris, said: “This investment is another massive vote of confidence for the commitment and expertise of our employees in Wales, and represents an important building block in securing a sustainable steel industry in Wales.”
The project will replace the BOS plant’s existing off-gas water-cooling system with an evaporative system that will produce steam. This steam will be converted through a turbine into electrical power, improving the energy balance of the steel melt shop and the process safety of the plant.