Tata Steel Nederland (TSN), the Dutch subsidiary of Tata Steel, has signed a non-binding Joint Letter of Intent (JLoI) with the Government of the Netherlands and the Province of North-Holland. The agreement lays the groundwork for a comprehensive decarbonisation and health project at TSN’s IJmuiden steelworks, aimed at reducing carbon emissions while enhancing environmental and community health around the facility.
Key Elements of the Agreement
The JLoI establishes a framework for collaboration without imposing binding execution or subsidy commitments. It represents the initial phase of discussions that will lead to a full-scale, policy-compliant agreement subject to approvals and investment decisions.
As part of the plan, TSN aims to:
- Decommission Blast Furnace #7 and Coke and Gas Plant 2, replacing them with a Direct Reduction Plant (DRP) and Electric Arc Furnace (EAF), cutting Scope 1 CO₂ emissions by 5.4 million tonnes annually.
- Integrate Carbon Capture and Storage (CCS) into the DRP to reduce an additional 0.6 million tonnes of emissions, with a future transition to biomethane or hydrogen targeting another 1.2 million tonnes.
- Implement dust, noise, odour, and harmful emission reduction measures through facility upgrades including new covers, windbreaks, and dust control systems.
- Increase scrap usage from 17% (2019) to 30%, improving circularity and enabling better slag reuse.
Funding and Support
The Dutch government has committed up to €2 billion for the project. TSN has also applied for €0.3 billion from the EU Innovation Fund, with the remaining funding expected from internal cash flows, project financing, and contributions from Tata Steel Limited.
Leadership Perspective
T V Narendran, CEO & MD of Tata Steel and Chairman of Tata Steel Nederland, highlighted the initiative as a first step in a complex transition. He emphasized the importance of internal engineering readiness, policy alignment, statutory approvals, and cost optimisation before finalising the investment.
Summary
Tata Steel Nederland has signed a non-binding Joint Letter of Intent with the Dutch government and the Province of North-Holland to initiate a decarbonisation and health project at its IJmuiden plant. Key plans include replacing old blast furnaces with low-carbon technology, integrating carbon capture, reducing emissions, and boosting scrap usage. The project has potential support of €2.3 billion from government and EU funds, with additional financing from Tata Steel. The initiative marks a major step toward low-carbon steel production and improved environmental outcomes, although final execution will depend on regulatory approvals, policy clarity, and investment decisions.
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