Corus steelworks in Port Talbot, the largest emitter of CO2 in Wales, is to radically cut its carbon footprint after a £60m, two-year overhaul.
The upgrade is the single biggest climate change investment in Wales and will allow the steelworks to recover by-product gas and recycle it as fuel. Previously this gas was flared off.
Owner Tata Steel, which took over the plant in 2007, wanted to cut wasteful burning of gas and said the investment was vital to stay competitive in the global steel industry.
Presently, the steelworks produces up to 7m tonnes of C02. It estimates it will now cut 240,000 tonnes per year and reduce emissions of dust particles by 40 tonnes a year.
Similar technology is in place at the Corus plant at Scunthorpe and also at operations in the Netherlands and India.