Skip to content
Search

Latest Stories

Tata Steel seeks subsidies to decarbonise Port Talbot steelworks

Port Talbot is home to Britain’s biggest steelworks

Tata Steel seeks subsidies to decarbonise Port Talbot steelworks

Tata Steel UK chairman, Henrik Adam, has urged the UK government to provide subsidies to decarbonise the Port Talbot steelworks of the company.

He said that European competitors were receiving huge amounts from governments to transition to greener operations.


According to reports, ministers offered Tata £300 million for decarbonisation.

Port Talbot is home to Britain's biggest steelworks with two blast furnaces working around the clock to produce steel and allows the country to have a local and reliable source of steel production.

Its owners have committed to transforming the site and dramatically reducing its emissions due to pollution concerns.

"The only thing we are really asking for is a level playing field across our peers in Europe. We are in competition with European steel makers, and so we are not asking for a special deal," Adam was quoted as saying by the BBC Wales.

The blast furnaces at Port Talbot would require multi-million pound upgrades in the next few years as they are nearing the end of their lives.

One option is to replace them with electric arc furnaces powered by renewable energy, but it's costly and take years to build. Tata Steel UK wants the government to subsidise the cost of construction, and its future energy bills.

When asked whether the reported £300m was enough, Adam said, "Other nations are pouring billions of pounds into our competitors, and they give support with energy costs.

"That is something which we are considering with quite some, I would say, nervousness. Because if that is happening around us, it's difficult for us to be competitive."

According to him, with the long-term transformation of Port Talbot the jobs will change in the profile, there will be new jobs and other jobs.

Cheaper steel imports, particularly from China, have proved difficult for companies like Tata Steel.

The mission to decarbonise is a common one across the steel industry, according to theGreen Alliance.

"The Port Talbot site in south Wales is one of the largest individual sites in terms of greenhouse gas emissions in the UK, so there really is a significant impact from the steel industry," said Roz Bulleid from Green Alliance.

Bulleid called on steelmakers to commit more money and to hasten their decarbonisation process as demand from customers for cleaner steel is encouraging investment.

The independent think tank estimated turning off two of the UK's four blast furnaces would have the equivalent impact on emissions of removing 2.4 million petrol cars from the roads.

More For You

JLR-Tata-Getty

JLR had initially planned to manufacture more than 70,000 electric vehicles at the facility. (Photo: Getty Images)

JLR halts plan to build EVs at Tata’s India plant: Report

JAGUAR LAND ROVER (JLR) has put on hold plans to manufacture electric vehicles at Tata Motors’ upcoming £775 million factory in southern India, according to a news report.

The decision was influenced by challenges in balancing price and quality for locally sourced EV components, three of the sources said. They added that slowing demand for electric vehicles was also a factor.

Keep ReadingShow less
Government to abolish payments regulator to boost growth

Keir Starmer (R) and Rachel Reeves host an investment roundtable discussion with members of the BlackRock executive board at 10 Downing Street on November 21, 2024 in London, England. (Photo by Frank Augstein - WPA Pool/Getty Images)

Government to abolish payments regulator to boost growth

PAYMENTS REGULATOR will be abolished and its remit absorbed by another financial regulator, the government said on Tuesday (11), as it aims to cut red tape in favour of growth.

The Payment Systems Regulator (PSR), which oversees systems including MasterCard and bank transfers, tackles problems such as fraud, excessive fees and lack of competition among banks and payment providers.

Keep ReadingShow less
Boohoo

Boohoo’s shares, which have fallen by about 20 per cent this year, dropped 4 per cent on Tuesday. (Photo: Getty Images)

Boohoo rebrands as Debenhams after 21 per cent sales drop

BOOHOO has rebranded itself as Debenhams Group after sales from its young fashion brands, including Boohoo, MAN, and PrettyLittleThing, declined by 21 per cent to £947 million.

The move comes amid strong competition from Shein and a shift towards second-hand clothing among younger shoppers, The Guardian reported.

Keep ReadingShow less