Tata Steel has signed a non-binding Joint Letter of Intent with the Government of the Netherlands and the Province of North-Holland for an integrated decarbonization and health measures project at Tata Steel Nederland (TSN). The project aims to reduce CO2 emissions and improve the living environment around the IJmuiden site, marking a significant step towards sustainable steel production. The final investment decision is pending board approval.
Decarbonization Agreement Reached
Tata Steel and Tata Steel Nederland (TSN) have reached an agreement with the Government of the Netherlands and the province of North-Holland regarding an integrated project at TSN. A non-binding Joint Letter of Intent (JLol) has been signed, outlining the framework for transitioning to low CO2 steel production and improving the environmental conditions near the IJmuiden facility. This announcement was made on September 29, 2025.
Project Objectives
The JLol establishes the goals of the involved parties but does not guarantee the execution of the projects or the subsidy. However, all parties commit to negotiating in good faith toward a tailor-made agreement. The final investment decision will be subject to consideration by the Tata Steel Board. Key aspects of the project include:
- Transitioning to low CO2 steel production.
- Improving the health and living environment in the surrounding area.
Statements from Leadership
Mr. T V Narendran, CEO & Managing Director of Tata Steel, expressed gratitude to Minister Hermans and the teams from the Netherlands Government and the province of North-Holland for their collaborative efforts. He emphasized the commitment to creating a sustainable long-term future for Tata Steel Nederland and noted, “We are committed to working with all stakeholders including the government on resolving these points before the finalisation of the tailor-made agreement. The size and scale of the project is very large, and we are working to ensure that Tata Steel Nederland is ready for it…”
Key Steps
Before proceeding with the investment decision, several issues need resolution, including completion of engineering preparations, addressing regulatory aspects, resolving policy matters, obtaining project permits, and agreeing on detailed terms for the binding agreement. The company is also monitoring EU policy developments regarding CBAM and Dutch Parliament discussions on 2030 CO2 reduction targets.
Planned Initiatives
The first phase of the project targets the following goals:
- Decommissioning Blast Furnace #7 and Coke and Gas Plant 2.
- Constructing a DRP initially operating on natural gas and an EAF with increased scrap intake.
- Reducing annual scope 1 CO2 emissions by 5.4 Mta relative to the as-is maximum of 12.6 Mta.
- Further scope 1 CO2 emissions reduction by 0.6 Mta with Carbon Capture and Storage.
- Additional scope 1 CO2 emissions reduction by 1.2 Mta using biomethane and/or hydrogen.
Environmental Improvements
In addition to decarbonization, the project will focus on improving the health and living environment by reducing coarse and fine dust (PM10) immissions, emissions of substances of very high concern, odour emissions, and noise. Specific measures include:
- Covering the blending pile of the pellet plant.
- Building a windbreak for the blending pile of the sinter plant.
- Covering the iron ore yards.
- Investing in dust reduction measures at slag processing facilities.
Circular Economy
Tata Steel aims to implement new processing methods to improve the application of existing Basic Oxygen Steelmaking slag and future EAF slag. The company also intends to increase its intake of scrap from 17% in 2019 to 30% to improve circularity.
Termination Clauses
The JLol includes termination clauses for both Tata Steel and the Dutch government, contingent on certain conditions related to national CO2 levy policies, network tariffs, and policies affecting steel slag.
Source: BSE
