Tata Steel Secures €2bn for Low-Carbon Transition in Netherlands
Tata Steel has secured €2bn in Dutch government funding to kickstart the transition to low-carbon steel production at its IJmuiden site. This marks a significant step in reducing the environmental impact of one of the Netherlands' largest industrial emitters.
The first phase of the programme will involve replacing one of the site's two coal-fired plants with natural gas-fuelled plants, with a later switch to hydrogen. This move is expected to not only support the Netherlands' climate targets but also improve local air quality around the IJmuiden site. The Dutch State Secretary for Infrastructure, Vivianne Heijnen, welcomed the funding, stating it was 'an important step' in reducing the environmental impact of the site.
Steelmaking contributes around 7% to 9% of global greenhouse gas emissions. The traditional blast furnace route releases approximately 1.6 to 2 tonnes of CO2 for every tonne of crude steel produced. Tata Steel's transition aims to reduce these emissions and improve the quality of life in the surrounding area. The company plans to finalise an agreement with the government in 2026, with the first replacement plant scheduled before 2030.
Tata Steel's €2bn investment is part of a wider €4bn to €6.5bn package aimed at phasing out coal-fired blast furnaces in favour of gas-based direct reduction technology and exploring carbon capture, biomethane, and green hydrogen. This move aligns with the Netherlands' commitment to reducing emissions and improving air quality, setting a positive example for the broader steel industry.
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