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The new electric furnace will have ultra-low emissions if the energy supply comes from renewable sources.

Tata has closed its two coal-fired blast furnaces and is to replace them with an electric furnace that will need fewer workers.

Future steelmaking in Port Talbot will rely on imports until an electric furnace, which melts scrap steel, is built.

But they could not convince Tata to keep its two blast furnaces open until the new electric furnace is built.

The money will go towards the cost of building a greener electric furnace in Port Talbot, and matches the amount agreed by the previous Conservative government.