British Steel gets £ 100m government loan to pay CO2 bill




  View of Scunthorpe steel factory Image copyright
British Steel

Image caption

British Steels Scunthorpe plant

British Steel has secured a £ 1[ads1]00m government loan to pay its EU coal bill, a source close to the company said.

The money means that the private equity-owned firm will avoid a steep EU fine. 19659007] Earlier this month, the company said it needed funds to settle its 2018 pollution bill at the end of April.

Sky News said the government's money was used to paying for the company's carbon credits – and that British Steel would repay the money on commercial terms.

The company has been hit by an EU decision to suspend UK companies' access to free carbon permits until a Brexit withdrawal agreement is ratified.

EU Emissions Trading Scheme rules allow industrial polluters to use carbon credits to pay for last year's emissions, or trade them to raise money.

Each free license gives a company the right to decide tons (1,000kg) of carbon dioxide (CO2).

& # 39; Responsive and supportive & # 39;

Department of Business, Energy and Industrial Strategy (Beis) declined to comment on British Steel in particular, but said it was in "regular conversation with a wide range of companies".

Writing is expected to give a formal announcement Wednesday.

Earlier, British Steel said that the ministers and officials of the Ministry of Business, Energy and Industrial Strategy had "been responsive and supportive".

Private equity firm Greybull Kapital saved Tata Steel's long product business – which makes steel for the rail and construction sector – during the steel crisis in 2016, saving more than 4000 jobs.

It paid a nominal £ 1 fee for the assets, but pledged to plow up to £ 400m in the business that it rebranded British Steel.

Workers had to take a salary and reduce the pension in return, but the company has since returned to profit.

The company employs 4,000 people at its Scunthorpe facility and has locations in Teesside, Cumbria and North Yorkshire. 19659021]



Source link