A coal-fired power station in Rotterdam is to close down with a few months, now its owners US investment house Riverstone have reached agreement with the government on a compensation package.

Junior infrastructure minister Dilan Yeşilgöz said on Tuesday that the owners will receive €212.5m in subsidies to pay for the closure and dismantling. The company had first asked for €240m in 2020.

‘Step by step we are phasing out coal-fired power stations in the Netherlands,’ Yesilgoz said. ‘The remaining three power stations will still be needed in the coming years during periods when there is little wind and sun.’

One of the conditions attached to the subsidy is that the company draws up an ‘adequate’ social plan for the plant’s workforce. Brussels must also agree that the money does not count as unfair state subsidies for industry, Yesilgoz said.

The closure will help the Netherlands meet climate targets by sharply reducing carbon dioxide emissions.