As Tata Steel UK seeks UK government subsidies to decarbonize its Port Talbot steelworks, the company's chairman has urged for "level playing fields.".
Henrik Adam claimed that European rivals were getting "billions of pounds" in funding from their governments to make the switch to more environmentally friendly practices.
Tata has reportedly received a £300 million decarbonization offer from UK ministers.
A "decarbonized, competitive future for the sector" was what the UK government pledged to achieve.
The business secretary made her commitment to securing a decarbonized, competitive future for the sector clear when she visited Port Talbot earlier this year, according to the UK government Department for Business and Trade. The business secretary is aware of how important the steel industry is to Wales.
We are unable to comment on negotiations that are sensitive to business. has been contacted for comment.
Britain's largest steelworks, located in Port Talbot, have two blast furnaces that operate continuously to produce steel used in a variety of products, from tin cans to submarines.
The owners of the works, one of the biggest polluters in the UK, have vowed to transform the location and significantly reduce emissions.
In an exclusive interview with BBC Wales, Henrik Adam stated, "The only thing we are really asking for is a level playing field across our peers in Europe.".
Tata is "really committed," he claimed, to decarbonizing the facility.
Since we compete with European steel producers, he continued, "We are not asking for a special deal.".
According to him, the business must be on an even playing field with "competitive grounds on support for investment, but also a competitive landscape on energy costs.".
Both of Port Talbot's blast furnaces are nearing the end of their useful lives and will require multimillion-pound upgrades in the coming years to remain operational.
Although it would cost billions of pounds and require years of planning and construction, one option is to replace them with electric arc furnaces powered by renewable energy.
Tata Steel UK wants the UK government to provide financial assistance for the cost of construction and associated future energy costs.
Mr. Adam stated: "Other nations are pouring billions of dollars into our competitors, and they give support with energy costs. I won't say whether the reported £300 million offered by the UK government is enough.
"We are thinking about that with a fair amount of anxiety, I would say. It's difficult for us to be competitive if that is happening all around us," he said.
The Port Talbot steelworks are regarded as a strategic asset that provide the UK with a nearby, dependable source of steel production.
For businesses like Tata Steel, importing cheaper steel has proven challenging, especially from China.
According to the unbiased think tank Green Alliance, decarbonization is a goal shared by the entire steel industry.
There is a significant impact from the steel industry, according to Roz Bulleid of the Green Alliance. "The Port Talbot site in south Wales is one of the largest individual sites in terms of greenhouse gas emissions in the UK," she said.
She added that the steel industry was taking the issue seriously and that new technologies had emerged that could reduce emissions.
Although she urged steelmakers to invest more money and speed up their decarbonization process, she acknowledged that customer demand for cleaner steel was encouraging investment.
The government official continued, "Having said that, there are governments around the world investing tens, and sometimes hundreds of millions, in lower carbon steelmaking in their own nations.".
As a result, I can understand why the local steel industry is asking the government for a more direct subsidy. ".
According to the Green Alliance, removing 2.4 million gasoline vehicles from the road would have the same effect on emissions as turning off two of the UK's four blast furnaces.
When asked if Port Talbot's long-term change would mean fewer jobs in the steel industry, Mr. Adam responded, "I think it's too early to say it's a job cutter, the jobs will change in the profile, there will be new jobs, other jobs. ".
The business secretary made her commitment to securing a decarbonized, competitive future for the sector clear when she visited Port Talbot earlier this year, according to the UK government Department for Business and Trade. The business secretary is aware of how important the steel industry is to Wales.
We are unable to comment on negotiations that are sensitive to business.
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