Steelmaker will adopt same technologies used in its plants in Scunthorpe and Holland
Steelmaker Corus is to invest £60m in reducing carbon emissions from its Port Talbot plant.
The investment will reduce emissions through the reuse of gas inside the Basic Oxygen Steel (BOS) plant, according to Corus.
The steelworks plant uses 140 MW of energy, half of which is internally generated. Similar CO2-reduction technology exists at the steelmakers' other integrated steelmaking sites in Scunthorpe, Holland and India.
Acting managing director Robert Bizzell said: "This investment will play a significant part in creating a sustainable steel industry here in Wales."
Corus said the investment was important for it to compete on the world stage.
David Ferris, a Port Talbot union leader, said: "Not only is this great news for employees at the works, but there are great advantages for the community and the environment."
Corus was bought by Indian firm Tata Steel for £6.7 billion just over a year ago.