The UK government is this week considering the approval of a financial aid package of £600 million for two steelmakers, British Steel and Tata Steel UK, for their green transition, according to a report by the BBC.
The considered funding package is aimed at protecting thousands of jobs in the country and helping the companies to switch away from coal-fired blast furnaces in the face of soaring energy prices and high inflation.
British Steel needs government financial support of about £300 million to keep the blast furnaces at its Scunthorpe plant operating, as SteelOrbis previously reported. However, it is reported that the considered funding will be given on condition that the company only use it for replacing the blast furnaces with electric arc furnaces, which cause lower emissions.
Meanwhile, £300 million may not be enough for Tata Steel UK to make a big investment to introduce green furnaces at its operations, SteelOrbis understands.