03
November
2023
|
15:52
Europe/Amsterdam

Tata Steel Nederland submits Green Steel plan with emphasis on reducing emissions

Summary

Today, Tata Steel Nederland submitted its Green Steel Plan 2030 to the Ministry of Economic Affairs and Climate Policy for the tailor-made approach.

Tata Steel Nederland’ plan focuses on three concrete issues that will make a significant contribution to Dutch and European climate objectives. The impact on the immediate living environment will be reduced and Tata Steel Nederland and the Netherlands will become more circular. The plan has changed significantly from the previous plan. The new plan has the same climate ambition, but there is more emphasis on the environment with a focus on a different technology. 

Concrete objectives 

  1. Clean: Tata Steel Nederland intends to prioritise the reduction of particulate matter and nitrogen dioxides. According to external research, these have the most impact on the immediate living environment1). In addition to measures that we are already taking to reduce particulate matter, the plan contains non-statutory measures to cover the raw material storages that are part of the Green Steel plan. These canopies prevent the drift of fine dust and coarse dust. Tata Steel Nederland is already implementing measures to reduce nitrogen oxide emissions, such as the construction of a large DeNOx installation at the Pellet Factory. This plant will come into operation in 2025 and means that NOx emissions at that plant will be reduced by around 80%. 
  2. Green: From 2030 onwards, 5 million tonnes of CO2 will be emitted less annually in accordance with the previously made agreements in the Expression of Principles in 2022. The climate target can be achieved by replacing Blast Furnace 7 and Coking and Gas Plant 2 (which will close by 2029 at the latest) with a so-called Direct Reduced Iron Plant (DRP) combined with an Electric Arc Furnace (EAF). 
  3. Circular: Tata Steel Nederland is increasing the use of scrap to approximately 30% of total annual production from 2030. As a result, the company is less dependent on primary raw materials. 
     
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“I am proud that we can now submit this amended plan. Our plan addresses not only the climate objectives, but above all the concerns of the environment. As a result, our plan has become better for the IJmond and for the Netherlands.  We've worked hard to make this happen. Our steel is part of everyone's daily life, increasingly in sustainable products. And our green steel will continue to do so.”

Hans van den Berg, CEO of Tata Steel Nederland
„

A changed company with new factories  

The Green Steel plan is a very big step towards reducing the impact on the environment and the climate as quickly as possible. It is probably the biggest industrial transition in the Netherlands in the coming years. This takes time, requires permits and changes on the ground. The people in the company are already working hard to make this a reality by 2030. In the meantime, Tata Steel Nederland is in full discussion with the Ministry of Economic Affairs, with the province of North Holland, with suppliers and customers about the Green Steel plan. And also with local residents and other stakeholders in the management environment. An additional round of participation will start soon for the changes in the amended plan compared to the previous plan.    

How a Direct Reduced Iron Plant (DRP) and an Electric Arc Furnace (EAF) Work 

The DRP will initially run on natural gas. This installation can also run on hydrogen without modification. This will also happen as soon as hydrogen becomes available in sufficient quantities and at the right price. The hydrogen market is currently developing rapidly and various parties, including the government, are working hard to get this availability off the ground.   

The directly reduced iron from this DRP will be used in the EAF and supplemented with a much larger amount of scrap than Tata Steel Nederland currently uses. This makes the company much more circular.   

Support is needed for the transition 

The Green Steel plan is a transition that involves very significant investment. As with our European competitors, this transition cannot take place without financial support from the government. With the submission of the amended Green Steel plan, a new phase has begun. The next step is that the government will study the plan carefully and that Tata Steel Nederland and the Dutch government will continue to talk to each other in order to reach a final tailor-made agreement so that the plan can be further implemented.   

An important part of the discussions with the government is the competitive position of Tata Steel Nederland. Due to its coastal location, among other things, Tata Steel Nederland is currently one of the most competitive steel producers in Europe. However, because the costs for the use of energy (e.g. network costs) in the Netherlands will become significantly higher in the coming years than in other European countries, this position is at risk. As long as this is not standardised in Europe, these higher costs cannot be passed on to the market. This limits further investment opportunities for Tata Steel Nederland. This needs to be solved so that Tata Steel can achieve the green transition in the Netherlands.   

The focus of Tata Steel Nederland is now entirely on this first phase of the transition. The second phase will start in 2030. The so-called 'final investment decision' will be taken once the tailor-made agreement and the permits are in place.   
 
1) RIVM, The contribution of Tata Steel Nederland to the health risks of local residents and the quality of their living environment; RIVM report 2023-0171, figure 73, p 251