The government must make haste with financial support to enable Tata Steel in IJmuiden to comply with emission norms to prevent job losses and the decline of the country’s industrial base, trade union FNV and the GroenLinks-PvdA have told the government.

Tata Steel IJmuiden needs billions of euros to make the transition from coal to green hydrogen but negotiations about government support have not been concluded, broadcaster NOS reported.

The company is also facing competition from cheap Chinese steel, posting a loss of €556 million in the last year and scrapping 600 jobs. It is also facing liquidity problems.

If the government does not act now tens of thousands of jobs could be at risk, said FNV chairman Tuur Elzinga. “This is about the future of the manufacturing industry of the Netherlands. Something needs to happen or precious jobs will go,” he is quoted by NOS as saying.

“The government must meet Tata Steel halfway,” GroenLinks-PvdA MP Joris Thijssen said. “We want to get rid of CO2 pollution but we also want to continue to make steel in this country,” he told the broadcaster.

If Tata Steel does not make the transition by 2030, the introduction of the European ETS emissions system, which limits emission rights, will exacerbate its problems.

Some people argue the Netherlands should leave the production of steel to countries which have a surplus of sustainable electricity and hydrogen, such as Spain or the Scandinavian countries.

But according to Elzinga, the wind farms off the coast of IJmuiden will be more than capable of generating the electricity needed to produce green hydrogen.