Tata Steel to Get €2bn for Dutch Emission Cutting Transition
Tata Steel is set to receive €2bn from the Dutch government to transition its IJmuiden site to lower-carbon steelmaking. The first phase involves replacing one of the site's coal-fired plants with natural gas, later switching to hydrogen. This marks a significant step in reducing emissions from one of the country's largest industrial emitters.
Steelmaking contributes to around 7% to 9% of global greenhouse gas emissions. The traditional blast furnace route releases approximately 1.6 to 2 tonnes of CO2 per tonne of crude steel produced. The transition to gas-based direct reduction technology and exploring carbon capture, biomethane, and green hydrogen is expected to significantly reduce these emissions.
Dutch State Secretary Vivianne Heijnen noted that the funding is part of a wider package of €4bn to €6.5bn aimed at phasing out coal-fired blast furnaces. Tata Steel's transition is also expected to improve local air quality around the IJmuiden site, which has faced health and environmental concerns. The company plans to finalise an agreement with the government in 2026, with the first replacement plant scheduled before 2030.
Tata Steel's transition to lower-carbon steelmaking is part of a broader trend among European steel companies. Voestalpine, thyssenkrupp Steel, and MAN are also working towards reducing CO2 emissions, with plans to shift to electric arc furnaces, CO2-reduced steel products, and near CO2-neutral production, respectively.
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