Tata Steel Signs JLoI with Dutch Government on Decarbonisation & Health Project
Mumbai, September 29, 2025 – Tata Steel Limited announced the signing of a non-binding Joint Letter of Intent (JLoI) with the Government of the Netherlands and the Province of North-Holland to advance an integrated decarbonisation and health measures project at its IJmuiden plant in the Netherlands.
The agreement outlines the intent to transition Tata Steel Nederland (TSN) towards low-CO2 steel production while addressing environmental and community health concerns. Although non-binding, the JLoI marks a significant step towards negotiating a tailor-made binding agreement in the coming months, post Dutch national elections.
Transition Roadmap
The first phase involves decommissioning Blast Furnace #7 and the Coke & Gas Plant 2, and building a Direct Reduction Plant (DRP) and Electric Arc Furnace (EAF). Initially operating on natural gas with higher scrap intake, the project aims to cut scope 1 CO2 emissions by 5.4 Mta. Further reductions of 0.6 Mta are planned through Carbon Capture & Storage (CCS), with an additional 1.2 Mta possible through biomethane or hydrogen adoption.
Environmental Commitments
TSN will implement beyond-legal measures, including dust suppression, NOx and SO2 reduction, noise and odour control, and improved slag processing, alongside raising scrap usage from 17% (2019) to 30%.
Financial Support
The Dutch government intends to support the project with up to €2 billion, supplemented by a €0.3 billion EU Innovation Fund application. Remaining funding will come from Tata Steel Nederland, project financing, and Tata Steel Limited.
This initiative could become one of Europe’s largest industrial decarbonisation projects, positioning Tata Steel as a leader in sustainable steelmaking.
✅ Disclaimer: Informational update only, not investment advice.
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