The Netherlands is considering allocating up to €3 billion ($3.26 billion) for the green transformation of Tata Steel Ltd.’s IJmuiden factory, following years of serious health and environmental concerns in the surrounding area.
On Tuesday, the Dutch parliament approved the provision of unspecified subsidies to Tata Steel to accelerate the renovation efforts. External consultants estimate that the subsidies could amount to €3 billion, according to a spokesperson from the Dutch Ministry of Economic Affairs and Climate.
IJmuiden, Europe’s second-largest steel plant and a major industrial employer in the Netherlands, has been associated with elevated lung cancer rates and reduced life expectancy in the local population. The plant has also faced multiple fines for emitting toxic raw cokes, which are essential in steel production and are made by heating coal without air.
Negotiations with Tata Steel to finalize the funding agreement have already begun. However, the process remains confidential, and the ministry spokesperson cannot comment on the exact size of the subsidy at this time.
Tata Steel spokesperson Peter van Boesschoten expressed the company’s appreciation for the broad support from the Dutch parliament in making the steelworks more sustainable. However, he declined to comment on the specific amount of the subsidy.
"Besides the investment we will make in our Green Steel plan, we will also need government support, just like our competitors in Germany, Belgium, and France, to establish a level playing field across Europe," Van Boesschoten said.
The emissions from Tata Steel’s Dutch plant have been a contentious issue for some time, but the plant's cleanup requires costly upgrades. The government has historically taken a relaxed stance on regulating the plant, fearing that stricter measures could lead to significant job losses.
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