T.V. Narendran, CEO of Tata Steel Ltd: “In the Netherlands it's also about health, and not just about reducing CO2 emissions”

Wed, 19 Jun 2024 16:14:14 +0200

“In the Netherlands, it's not just about reducing CO2 emissions, but it’s also about health,” says Narendran. “Until a few years ago, the focus was mainly on green steel production in the future. Now, the conversation is also about how clean you are while making steel in the present. It's something we're committed to.”

This month, the Dutch government received the green light from the Dutch parliament to negotiate with Tata Steel Nederland about making the steel production in IJmuiden more sustainable. The Green Steel Plan includes the replacement of Blast Furnace 7 and Coke Oven Plant 2 with a Direct Reduction Plant (DRP) and an Electric Arc Furnace (EAF) by 2030, reducing CO2 emissions by 40%.

“Not easy, but we are confident”
“We will do everything we can to achieve this transition in the quickest possible time and the most technically feasible way,” says Narendran. He acknowledges that it won't be easy, pointing out the challenges of renovating Blast Furnace 6 in the past year. “This project (the Green Steel Plan) is more than five times larger and even more complex. At the same time, restoring the trust of the community and support for the renovation is crucial.”

Narendran also notes that the government will be keeping a close eye on the renovation and will intervene if necessary. “And that is correct. But I am confident. We have the advantage of being able to make full use of the knowledge and experience we have gained in India over the past decades in building new installations, also for IJmuiden. And as management, we will also keep an eye on the ball because the board is in nature an operational board.”

Rationale behind government subsidy
Narendran is clear about the rationale behind government subsidies for the European steel industry, summing up: “For any sector that is in transition and that we consider strategically important, government support in some form is not uncommon. Look at the automotive sector, would there be electric cars on the road now without subsidies? Or take the energy sector: would our solar panels and wind turbines have been commercially viable without any support in the early stages?”

The second argument is a level playing field. “How can Tata Steel Nederland remain competitive [without support], when 40% to 60% of the capital support for the green project has already been allocated by the governments in Germany, Belgium, Spain, France, or the United Kingdom?”

Finally, Narendran believes that subsidies from European governments for their steel companies are the most cost-effective way to reduce CO2 and achieve their climate goals. “With the state support that various European governments have pledged, they expect to achieve the greatest CO2 reduction benefit.”

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Newsroom Tata Steel Nederland

T.V. Narendran, CEO of Tata Steel Ltd: “In the Netherlands it's also about health, and not just about reducing CO2 emissions”