Tata Steel Nederland (TSN) has signed a non-binding joint letter of intent (JLoI) with the Government of the Netherlands and the province of North Holland, which outlines the framework for comprehensive decarbonization and sanitation measures at its Ijmuiden facility.
Callanish notes that the agreement marks the first step in TSN's transition to low-carbon steel production and efforts to improve the living conditions around its facilities.
The JLoI agreement sets targets for reducing CO₂ emissions and environmental impacts, but is not yet binding. According to an official statement from TSN, the two sides will continue negotiations on an individual agreement in the coming months, and the final investment decision must be approved by the board of directors of Tata Steel.
The Dutch government intends to support the initiative by allocating up to 2 billion euros ($2.35 billion), while TSN has applied for an additional 0.3 billion euros from the EU Innovation Fund. The remaining amount will be financed by cash flows, project debt, and support from the parent company.
Tata Steel CEO and Managing Director T.
V. Narendran said that the deal was concluded after two years of discussions.
"We have a lot of issues to resolve and a lot of work to do," he said, citing engineering readiness, regulatory approval, clarity of policy and permitting processes. He added that TSN is working to improve its financial performance in order to maintain the scale of investments.
The first stage of the project involves the decommissioning of blast furnace No. 7 and coke plant No. 2, as well as the construction of a direct recovery unit (DRP) and an electric arc furnace (EAF). Initially, the DRP system was powered by natural gas, but later carbon capture and storage systems will be integrated into it, and then, as they become viable, the transition to biomethane or hydrogen will be carried out.
These measures can reduce annual CO2 emissions by 1% from the current baseline of 12.6 million tons by 7.2 million tons.
To address health and environmental issues, TSN implements projects to reduce dust, noise and unpleasant odors, including shutting down iron ore warehouses and slag cooling areas, as well as installing wind shields and fences at pellet and agglomerate production facilities. These short-term measures are expected to be completed by 2030. The company also plans to increase scrap usage from 17% to 30% in 2019, which will increase recycling efficiency and reduce emissions.
Both sides have agreed on conditions that may lead to termination.
