The UK government will approve a green transition aid package for the country's two largest steel companies, British Steel and Tata Steel UK.
The funding allocation is expected to be announced this week. Each of the companies will receive a grant of approximately £300 million ($371 million) and compensation for electricity costs for the transition from coking coal-fired blast furnaces to electric arc furnaces. The move was also designed to protect thousands of jobs in the UK's industrial centres.
The Department of Business, Energy and Industrial Strategy said it is working closely with the steel industry to secure what it describes as a "sustainable and competitive future". A financing package is being considered for British Steel, owned by China's Jingye, which has previously applied for hundreds of millions of pounds to prevent the Scunthorpe blast furnace in Lincolnshire from shutting down, according to insider information.
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