What is CO2?
Carbon dioxide (CO₂) is a colourless and odourless gas that occurs naturally in the atmosphere. It is a greenhouse gas that contributes to the enhanced greenhouse effect and, in turn, climate change. CO₂ is produced as a by-product of combustion processes – this applies to almost all forms of burning, including:
- Fossil fuels (such as coal, oil and gas)
- Wood stoves and open fireplaces
- Car engines
- Industrial processes
- Even human respiration: when our bodies “burn” food for energy, we produce CO₂, which we then exhale
These natural and human processes constantly release CO₂ into the atmosphere. The problem arises when emissions exceed the Earth’s natural absorption capacity, leading to an accumulation in the atmosphere and intensifying the greenhouse effect.


CO2 emissions at Tata Steel
Producing steel using coal – as is standard practice worldwide – results in high CO₂ emissions. At maximum production, Tata Steel Nederland emits around 12.6 million tonnes (Mt) of CO₂ annually.* We are determined to reduce this significantly. By 2045, we aim to be a CO₂-neutral steel producer. We will achieve this by transforming the way we make steel and by introducing improvements across the entire value chain, from raw materials to finished products.
*The figure of 12.6 Mt CO₂ is a scaled baseline, based on the annual production of 7.23 Mt of liquid steel.
This is where CO₂ is produced (and how we get rid of it)
In our current process, iron ore and coke are charged into blast furnaces. Coke is produced from coal. When burned, the carbon (C) in coke bonds with oxygen (O) in the iron ore. This reaction releases significant amounts of CO₂ into the atmosphere.
To become CO₂ neutral by 2045, we must move away from coal. We will achieve this by replacing blast furnaces with new installations that operate on sustainable energy sources, such as biomethane and hydrogen. We expect the new installations to start operating on natural gas in 2030. As soon as biomethane and/or hydrogen become sufficiently available, we will switch to these fuels and phase out natural gas. As an interim step, we will also implement Carbon Capture and Storage (“CCS”).
It is also possible to reduce emissions by capturing CO₂ and permanently storing it underground, for example, in depleted gas fields beneath the North Sea. This technique, known as CCS, is already in use worldwide – in Norway, the United States and Australia – and is a proven method for rapidly reducing CO₂ emissions. In the Netherlands, the first CCS project – Porthos – is expected to begin in 2026. We plan to use CCS to capture and store part of the residual CO₂ from our new installations.
Across Europe, 6 Tata Steel sites are now fully CO₂ neutral
Our service centres in Halmstad (Sweden), Naantali (Finland) and Gelsenkirchen (Germany) were the first to achieve CO₂ neutrality by switching entirely to renewable electricity. With the addition of our Geldermalsen facility in the Netherlands, Tata Steel now operates 6 climate-neutral business units.
