Tata Steel Eyes €6.5 Billion Agreement to Cut Dutch Emissions
(Bloomberg) -- Tata Steel Ltd. plans to cut emissions at its Netherlands operation in a project that could cost as much as €6.5 billion ($7.6 billion).
The investment is expected to range from €4 billion and €6.5 billion, with the state contributing as much as €2 billion, according to a press release from the Climate Ministry.
Tata Steel Nederland, the Indian conglomerate’s Dutch arm, signed a joint letter of intent with the government as a first step toward “binding agreements on investments to improve the living environment for local residents, reduce health risks, and significantly reduce CO2 emissions,” per a Monday statement.
One aim is to cut emissions from steel production by more than 40%. The plan is not yet finalized, and total costs will only be set once a climate agreement is signed. Tata Steel will also fund part of the project and has applied for €300 million from the EU Innovation Fund.
The company has faced pressure from the Dutch government to curb the health and environmental impact of its IJmuiden plant. Europe’s second-largest steel facility — and one of the Netherlands’ top industrial employers — has been linked to elevated lung cancer rates and shorter life expectancy in the surrounding area.
Regulators have threatened fines and the closing of one of the plant’s coke facilities if Tata Steel fails to significantly reduce toxic emissions this year.
“Retaining large companies, such as steel manufacturer Tata Steel, is important,” said Climate Minister Sophie Hermans. “It allows the Netherlands to remain independent and makes us less dependent on other countries in this rapidly changing world.”
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