Tata Steel in IJmuiden is reconsidering how to make its plant more sustainable and is looking at several scenarios including one that does not use green hydrogen, the Financieele Dagblad said on Friday.

In 2021, Tata announced its intention to switch to production using hydrogen instead of coal, following years of concern about pollution generated by the factory. Experts said at the time the plan was extremely ambitious and would require billions of euros in investment.

The FD says the rethink about the green plans is made plain in a report of meetings held by Tata officials with locals and other interest groups.

A spokesman also told the paper that new technological insights, plus inflation, high energy prices, nitrogen issues, the economic downturn and additional climate measures had an impact on the steel giant’s sustainability plans.

Green steel remains “the dot on the horizon”, the company said, but it is currently keeping “all options open”.

One option under consideration would be to stop extracting iron from ore and focus instead on melting down scrap. But this, broadcaster NOS pointed out, would effectively turn Tata into a recycling company.

The central works council is opposed to this scenario, saying it would cost a lot of jobs and would not be in the interest of the company’s future. The Tata spokesman told the paper it is too early to talk about job losses.

Tata Steel Nederland has a direct workforce of some 11,000, of whom 9,000 work in IJmuiden, but provides work for thousands more. The company will take a decision on its green plans after the summer.