Support for a major step towards cleaner steel production
Together with the Dutch government and our Indian parent company, we have signed a Joint Letter of Intent (“JLOI”). This marks an important step towards cleaner and future-proof steel production – developed in-house and in the Netherlands. The JLOI sets out agreements on targets, financing, and timelines, designed to create a healthier living environment and reduce CO2 emissions by over 40%*. This joint signing demonstrates our shared belief in the course of more sustainable steel production in the Netherlands, also known as the Green Steel Plan.
Support for a major step towards cleaner steel production
Support for a major step towards cleaner steel production
Key agreements with the government
The JLOI covers the first phase of the Green Steel Plan, under which new, modern installations will reduce emissions of CO₂, NOₓ, SO₂, and Substances of Very High Concern (“SVHC” – ZZS in Dutch). We are also taking additional environmental measures to reduce particulate matter (PM) levels in the air in Wijk aan Zee with 35% compared to 2019.
A healthier living environment
The new installations will replace Blast Furnace 7 and Coke and Gas Plant 2 (CGP2). This will significantly cut emissions. In addition, further measures will be introduced to improve the living environment:
- Coverages for ore stockyards and scrap processing areas
- Wind barrier for one of the ore stockyard
- Coverings for specific slag processing stages
- Additional filters on the new installations
Noise and odour
We have also agreed to reduce peak and tonal noise and improve the monitoring of noise levels by expanding and upgrading the current system in cooperation with independent experts. In parallel, we will take further measures to identify odour sources and reduce their impact on surrounding areas, in line with the Provincial Odour Decree.
Roadmap
In recent years, we have taken numerous environmental measures to reduce emissions of dust, odour, noise and PAHs. These are part of the Roadmap improvement programme, the results of which are included in the government agreements. However, the Roadmap investments are financed entirely by Tata Steel Nederland and are not part of the tailored subsidy.
- CO₂ emissions reduced by 43%*
- Up to 57%* reduction once biomethane and/or hydrogen are in use and CO₂ capture and storage (CCS) is applied
- Particulate matter concentrations in Wijk aan Zee reduced with 35% compared to 2019
- Targets have been agreed targets for SVHCs and heavy metals. The list of substances is based on advice of experts.**
- NOₓ emissions reduced by 44%***
- SO₂ emissions reduced by 38%***
- Odour impact reduced in line with the Provincial Odour Decree
- Reduction of peak and tonal noise by means of improved monitoring system.
See Table 6 of the Joint Letter of Intent for reduction details.
*CO₂ reduction percentage is based on a baseline of 12.6 Mt CO₂, scaled to 7.23 Mt liquid steel production.
**Agreed targets for SVHCs and heavy metals, based on the RIVM Methodological Framework for the GER and the advice of the AMVI Committee and IJmond Health Expert Group.
***Other percentages are based on the current situation as outlined in the Environmental Impact Assessment (“EIA”).
Alongside these agreements, Tata Steel Nederland is working on further improvements. In Phase 2, the remaining Coke and Gas Plant 1 (CGP1) and Blast Furnace 6 (BF6) will be replaced by newer, cleaner installations.
Our ambition is clear: to produce steel in a way that benefits both the environment, the Netherlands, and the climate. We therefore aim to close CGP2 and Blast Furnace 7, replacing them with modern installations: the Direct Reduced Iron (DRI) plant and an Electric Arc Furnace (EAF). Initially, these will run on natural gas, significantly reducing reliance on coal. We will also increase scrap metal use. Together, these changes will cut CO₂ emissions by over 40%, equal to around 5.4 Mt per year.
Switch to more sustainable energy sources.
Once sufficient biomethane and/or hydrogen is available, the DRI installation will be switched to run on these fuels. This will provide an additional 1.2 Mt CO₂ reduction annually.
As an interim step, we will also capture and store part of the remaining CO₂ in depleted North Sea gas fields. This CCS approach will cut a further 0.6 Mt annually. Together, these measures will increase the total reduction to up to 57%.
Tata Steel Nederland has not yet completed the full engineering of the integrated project and therefore not finalised the total spend. The capital expenditure spend and phasing will be finalised at the stage of signing of the tailor-made agreement and at the point of making the final investment decision, and the project execution will also be spread over several years. The Dutch government intends to support up to €2 Billion under the JLoI. Additionally, TSN has made an application to the EU Innovation Fund for ~€0.3 Billion. The remaining amount is expected to be funded by a combination of the cash generated and contributed by Tata Steel Nederland, project financing debt, and funding procured by Tata Steel Limited over the period of project spend.
What’s next?
This is a major step – but not the final one. The JLOI is not yet a binding agreement.
After the upcoming elections, discussions will resume to finalise the tailored agreement, including targets, conditions, and financing. Once concluded, these terms will be converted into a binding contract, including detailed implementation timelines. This is how we are building the future of steel – together.
Staal is het fundament van ons dagelijks leven: van bruggen en ziekenhuizen tot windmolens en huishoudelijke apparaten. Hoewel het vaak onzichtbaar is, is het onmisbaar.
De gezamenlijke ondertekening laat zien dat Tata Steel Nederland, de Nederlandse overheid en ons Indiase moederbedrijf geloven in de koers van een groene staalproductie in Nederland. Dit benadrukt het belang van staal in ons dagelijks leven, nu en in de toekomst.
Bovendien geeft deze investering in duurzame staalproductie een krachtige impuls aan de kenniseconomie in Nederland. Daarmee versterken we onze rol als aanjager van de energietransitie, als aantrekkelijke ontwikkelpartner én als inspirerende werkgever voor de volgende generaties. Ook biedt de staalindustrie werkgelegenheid en toekomstperspectief aan 50.000 gezinnen.
