Steel must be produced in a cleaner way
Thanks to technological progress, we are now able to replace coal, initially with natural gas, and later, as availability increases, with more sustainable energy sources such as biomethane and green hydrogen. This transition will allow us to significantly reduce CO₂ emissions from our steelmaking processes.
Reducing CO₂ by reducing coal use: how does it work?
In our current process, iron ore and coke are charged into blast furnaces. Coke is produced from coal. When coke is burned, it releases CO₂ because the carbon (C) in coke combines with the oxygen (O) in the iron ore. This process ultimately produces large amounts of CO₂ emissions.
If we replace coal with other energy sources, such as hydrogen (H₂), the reaction is different: hydrogen binds with oxygen, producing water (H₂O) as the residual product – a clean outcome. However, this reaction cannot take place in a blast furnace, which is specifically designed to run on coal. For this reason, we are constructing a Direct Reduced Iron (''DRI'') plant, a new technology that can operate on natural gas, biomethane or hydrogen. In addition, we are building an Electric Arc Furnace (“EAF”), where the iron produced by the DRI plant is melted into liquid steel.
The transition to green steel
We intend to operate the new installations on natural gas (CH₄), replacing the function of one blast furnace. Switching from coal to natural gas alone will already reduce CO₂ emissions with 43%*. As soon as biomethane or green hydrogen becomes sufficiently available – and affordable – we will transition to these fuels and phase out natural gas. The new DRI installation has been specifically designed to switch flexibly between energy sources. Using Carbon Capture and Storage (CCS) will further cut emissions. Combined with biomethane and/or hydrogen, this will result in a total CO₂ reduction of up to 57%*.
*CO₂ reduction percentage is based on a baseline of 12.6 Mt CO₂, scaled to 7.23 Mt liquid steel production.
What is biomethane and how is it produced?
Biomethane is a clean gas produced by the anaerobic digestion (or gasification) of organic materials, such as manure, agricultural waste and food residues. It is a sustainable by-product and is chemically identical to natural gas (CH₄), meaning it can be used in the same way. Unlike natural gas, which releases fossil CO₂ stored underground for thousands of years, the CO₂ released from biomethane combustion comes from organic material that has recently absorbed carbon from the atmosphere. Since 2024, we have already replaced natural gas with biomethane in several parts of our steel production. In future, we also plan to use biomethane in the DRI plant as a reducing agent to remove oxygen from iron ore – a process known as reduction.
What is hydrogen and how is it produced?
ydrogen is a flammable, colourless, odourless, non-toxic gas that contains no carbon. It can be used for many of the same purposes as natural gas, including steelmaking.
Hydrogen is produced by splitting water (H₂O) using electricity – preferably from renewable sources – in a process called electrolysis. This produces hydrogen (H₂) and oxygen (O). The hydrogen is then transported, for example, through underground pipelines, to the DRI plant, where it is used as a reducing agent. Here, hydrogen removes oxygen from the iron ore: the oxygen (O) bonds with the hydrogen (H₂). This releases water (H₂O) instead of CO₂.
Tata Steel Nederland aims to produce steel with green hydrogen as soon as possible. It is called green because it is generated using renewable energy sources such as solar, hydro and wind power, including offshore wind farms in the North Sea.
CO2 storage
CO₂ emissions can also be reduced by capturing and permanently storing CO₂ underground, for example, in depleted gas fields beneath the North Sea. This technique, known as CCS, is already being used worldwide – in Norway, the United States and Australia – as a proven way of rapidly reducing emissions. In the Netherlands, the first CCS project – Porthos – is expected to begin in 2026. We plan to use CCS to reduce a portion of the residual CO₂ emissions from our new installations.
EN - Sustainability - L2 Green Steel Plan
We are going for green, clean and circular steel. Steel that is made to shape the future. Steel that is used, among other things, for solar farms, wind turbines, and batteries for electric cars.
EN - Green Steel - Agreement government
Agreement between Tata Steel and the government on the Green Steel plan.