May 2024 | Tata Steel Nederland has awarded contracts to Danieli and Tenova for the basic engineering of a Direct Reduction Plant (DRP), an Electric Arc Furnace (EAF) and other facilities at its IJmuiden location. The agreements will result in an engineering package that will form the basis for permitting the first phase of Tata Steel’s Green Steel plan. The company aims to apply for the necessary permits before the end of this year.
Steel is considered the metal of the energy transition. For over a century, it has been used in buildings and trains. More recently, steel has also been employed in wind turbines, solar panels, electrolysers, hydrogen pipelines, and electric cars. The demand for steel remains strong, with an increasing need for recycled and sustainably produced steel, explains Hans van den Berg, CEO of Tata Steel Nederland.
“Due to our location on the North Sea, IJmuiden is one of the best locations in Europe to make the transition to a more responsible steel production – clean, green, and more circular. And we are working hard to realise that ambition. At the same time, we are committed to the call of our stakeholders to further minimise the impact of our company on the immediate living environment at an accelerated pace. This is also in our interest. A cleaner steel production and combating climate change cannot tolerate any delay.” van den Berg adds.
Commitment to further reducing impact
Last year, Tata Steel sharpened its Green Steel plan. The plan has a clear timeline, goals, and endpoint. Health and climate play a prominent role in it. The plan explicitly addresses the concerns of local residents and other stakeholders in the IJmond area.
At the end of April, the Dutch government formally decided that it wanted to implement Tata Steel’s plans to become more sustainable more quickly. Now that the government has formally decided what the negotiating mandate of outgoing Dutch Minister Adriaansens of Economic Affairs and Climate Policy and outgoing State Secretary Heijnen for Infrastructure and Water Management is, negotiations have started with Tata Steel to lead to a legally binding and enforceable tailor-made agreement.
Tata Steel’s focus is now entirely on the first phase of its Green Steel plan. Once the tailor-made agreement with the Dutch government is in place, the company can begin ordering long lead items based on the progressed engineering work, ensuring it is on track for 2030.
Visualization of the planned direct reduction plant and electric arc furnace at the Tata Steel plant in IJmuiden © Tata Steel
Pathway to complete CO2 neutrality by 2045
In the coming years, Tata Steel Nederland will transform into a clean, green, and circular steel company. The company aims to produce the full product portfolio without compromising on quality and to become completely CO2 neutral by 2045, as one of the first major steelworks in the world.
Tata Steel will implement its Green Steel plan in three stages. The first stage will go into operation by as soon as 2030 and consists of 1 DRP and 1 EAF replacing Blast Furnace 7 and Cokes and Gas Plant 2 (KGF2). This means 40% less CO2 emissions. The company also wants to take measures to further reduce emissions and particulate matter, and use more scrap in the production of steel (from 17% to 30%).
In the second phase of its transition, Tata Steel aims to close Blast Furnace 6 and Cokes and Gas Plant 1 (KGF1), which will result in a total CO2 reduction of approximately 80%. In the following years towards 2045, Tata Steel will become completely CO2 neutral.
