State support for the greening of Tata Steel is justifiable, but the government must also enforce that the company reduces health risks more quickly. Independent advisors Hans Wijers and Frans Blom wrote this to outgoing minister Micky Adriaansens (Economic Affairs, VVD).
She had asked the two for a second opinion on the steel factory's greening plans. The government is considering contributing an as yet unknown amount.
Tata Steel's plan to make 'green' steel based on hydrogen and smelting scrap is good for the Dutch economy, the strategic autonomy of Europe and keeps the company competitive, conclude former minister Wijers and former consultant Blom. But the government should demand more speed in reducing nuisance for local residents when agreeing on support. For example, the company should consider closing one of its coking gas plants earlier than 2029, as Tata is now planning.
The sustainability of Tata Steel, which alone accounts for 7 percent of the Dutch CO2emissions is a difficult issue. The company with around 8,000 employees and the cabinet have been discussing state aid for adapting the factory for two years, but so far without results. The assumed contribution is at least hundreds of millions of euros, for a project costing several billions.
Alternatives
To prevent tunnel vision about Tata Steel's plan, Adriaansens last year asked Wijers and Blom, both involved in the think tank Denkwerk, to investigate alternatives. What if the government does nothing? Or actively committed to closure? Wijers and Blom then spoke with all kinds of stakeholders, from trade unions to Tata management and from Greenpeace to interest groups for local residents.
Doing nothing or closing down is not preferable, Blom and Wijers now say. If the government monitors the developments, there is a chance that Tata Steel will continue to produce CO for a long time2 continues to emit. And closure results in the loss of a relatively good and efficient steel mill, and costs many jobs.
Support for Tata Steel's plan is a good option, because it serves the economic interests of the factory and contributes to an accelerated reduction in CO2emissions. But ideally the state will impose additional conditions. The advisors mention faster capping of raw material storage and earlier closure of coke factory 2, which is considered very outdated and polluting. Tata Steel, which makes a profit of around 300 million euros in 'average' years, has always said the coke gas plant is crucial for competitive production.
Political decision
Blom and Wijers emphasize that the choice is ultimately a political decision. In that sense, according to the two, it is not entirely possible to determine objectively what the best plan is. For example, they warn that the plan to reduce nuisance more quickly is more expensive and may therefore cost more taxpayers' money. The implementation risks are also not the same for all routes.
In her letter to Parliament accompanying the report, Minister Adriaansens wrote on Thursday that she is examining whether health risks can be reduced more quickly by Tata Steel. According to the government, the option with closure of the coke factory and covering the raw material storage offers “the most benefits for improving the living environment of local residents”.
The minister points to a report published in February by the IJmond Health Expert Group. They investigated the health damage caused by the factory and concluded that it is probably greater than expected.
Shorter life
The Tata Steel factory, part of the Indian group of the same name, has been fiercely criticized for years for its harmful impact on the environment. Extensive research by the public health and environmental institute RIVM has shown that local residents live about 2.5 months shorter than the average Dutch person. Harmful amounts of lead and PAHs also appeared to exist in the environment.
Tata Steel has already implemented measures to reduce emissions in recent years. The fact that coking plant 2 nevertheless remained open has aroused the anger of many local residents.
In an initial response, Tata Steel CEO Hans van den Berg said on Thursday that he would like to quickly consult with the minister about the advice. According to him, “there is certainly room for discussion” about taking health measures more quickly.
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