Tata Steel announces the closure of UK steel plant unless the government provides subsidies

UK’s biggest steelmaker Tata Steel has demanded a £1.5b subsidy from the UK government ($ 1.79 billion) for the decarbonization project of the country's largest smelter Port Talbot.

Tata Steel plans to shut down both of the mill's blast furnaces and BOFs, replacing them with two electric arc furnaces, which will significantly reduce carbon emissions.

According to Tata Steel, negotiations with the government on this project which will cost £3b have been going on for two years. However, the amount requested by Tata Steel exceeds all the funds that the British authorities allocate for the decarbonization of the industry. The company threatens to shut down the steel plant if they do not lead to a concrete result within another 12 months.