A rescue package exceeding £1 billion is under consideration, primarily aimed at keeping Tata Steel’s Port Talbot steelworks operational, according to Sky News.
Sky News also indicated that Tata Steel’s parent company is contemplating an investment of £700 million in capital expenditure, which would facilitate the transition away from coal-fired blast furnaces.
The proposed plan includes a commitment to constructing electric arc furnaces, recognised for their more efficient steel production methods compared to conventional blast furnaces.
A Tata Steel spokesperson told Energy Live News (ELN): “Tata Steel is continuing to discuss with the UK government a framework for continuity and decarbonisation of steel making in the UK amidst very challenging underlying business conditions given that several of its heavy end assets are approaching end of life.
“Given the financially constrained position of our UK business, any significant change is only possible with government investment and support, as also seen in other steel making countries in Europe where governments are actively supporting companies in de-carbonisation initiatives.”
A spokesperson for Community, the steelworkers’ union, said: “We remain in discussions with the company and the unions have not agreed on any decarbonisation strategy for Port Talbot.
“We continue to support a solution that will maintain blast furnace production and safeguard the future for all the UK plants. We are ready to use all means at our disposal to protect jobs and our vital strategic industry.”
ELN reached out to the Department for Business and Trade for comment – a spokesperson said the department declined to comment on ongoing commercial negotiations.