Tata Steel said it is in talks with the Dutch government over a proposed decarbonization roadmap for the company’s plant in the Netherlands.
The company’s statement came after reports that the Netherlands could provide as much as 3 billion euros ($3.26 billion) for the green transformation of the steel major’s IJmuiden plant, which has caused serious health and environmental problems in the surrounding area.
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“The company is in discussions with the Dutch government on the proposed decarbonization roadmap,” Tata Steel said in a stock exchange filing.
The Dutch parliament had in March formally mandated the government to negotiate the terms of possible support for a decarbonization proposal at Tata Steel Nederland. Ultimately, the Dutch government has formulated a detailed framework for diligence, analysis, discussions and negotiations with the steel major, which will take place over several months before potentially culminating in an agreed set of terms.
“These terms will then have to be approved by the Dutch parliament and the board of Tata Steel. It may be premature to draw any final conclusions at this stage and therefore the company is not in a position to comment further…,” the filing said.
In October 2021, Tata Steel completed the process of separating Tata Steel UK and Tata Steel Netherlands as two independent companies from Tata Steel Europe.
In the Netherlands, the company has a seven million ton per annum plant in IJmuiden.
The company aims to produce CO2 neutral steel in Europe by 2050.
Tata Steel Netherlands has been working intensively with the Dutch government on the contours of the decarbonization project covering emissions and health standards, it said.
