The Netherlands supports €3 billion in green subsidies for Tata Steel IJmuiden

The Dutch parliament has approved about €3 billion in environmental subsidies to Tata Steel Ijmuiden, a subsidiary of global steelmaker Tata Steel. This is reported by IO.

Tata Steel in Ijmuiden is the second largest steel plant in Europe and one of the largest industrial employers in the Netherlands. The company has a significant environmental impact on the surrounding regions due to large emissions using outdated blast furnace technology.

The state funds will be used to decarbonize the plant and increase the sustainability of the country’s steel industry. The path to the largest environmental subsidy to a commercial company in recent times is considered open, while the parliament is demanding firm guarantees of fulfillment.

The conversion of the plant will inevitably lead to changes for the city of Ijmuiden. Some are concerned about the potential loss of jobs, while the green modernization opens up the possibility of creating new positions.

According to Tata Steel spokesperson Peter van Boetschoten, Tata Steel is pleased with the broad support from the Dutch parliament for improving the sustainability of the steel plant.

«In addition to our own funds, which we will invest in the Green Steel project, we also need government support, just like our competitors in Germany, Belgium and France, to get as close as possible to the European rules of the game,» he added.

The emissions and environmental impact of Tata Steel’s Dutch plant have long been a source of controversy, but decarbonizing the plant requires major investments. The government has taken a liberal approach to this issue for many years, fearing that intervention could cost thousands of jobs.

The capacity of the Ijmuiden steel plant is estimated at 6 million tons of pig iron per year from two blast furnaces. BF No. 6 is capable of producing 2.5 million tons of pig iron per year. Steel production at the plant is estimated at 7.5 million tons per year. The company specializes in the production of cold-rolled, hot-dip galvanized and painted coils and tinned products.

Tata Steel plans capital expenditures of approximately $2.04 billion in FY2024/2025. At the same time, 75% of the announced amount will be spent on projects in India, and the balance will be spent on enterprises in Europe.