India-based steel producer Tata Steel (tisc.ns) announced that it has signed a non-binding agreement with the Dutch government to transition to low-carbon steel production at its IJmuiden plant in the Netherlands. The facility is among the country’s largest polluters. Tata Steel has been negotiating subsidies with the government for months to decarbonize its production processes.
According to the company’s stock market filing, the agreement foresees the Dutch government providing up to 2 billion euros (2,35 billion dollars) in support, while Tata Steel Netherlands has applied for 0.3 billion euros from the EU Innovation Fund. The remaining costs are expected to be covered by cash generated by Tata Steel Nederland, project financing debt, and funding from parent company Tata Steel.
Tata Steel Nederland also noted that the total expenditure is not yet finalized, as engineering work for the project has not been fully completed.
Source: Reuters
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