The State, the province of North Holland, Tata Steel Nederland, and Tata Steel Limited have signed a joint declaration of intent for the transition in IJmuiden. The document is an interim step towards a binding, customized agreement and sets targets for emissions, health, and financial performance. According to the documents, the total investment is between four and six and a half billion euros. The national government intends to contribute a maximum of two billion, only after a final, customized agreement has been reached.
The coal line with Blast Furnace 7 and the second coke and gas plant will make way for a Direct Reduction plant with an electric furnace. This combination will start with natural gas and will reduce direct CO2 emissions by approximately 5,4 megatons per year. The plan subsequently includes CO2 storage at the reduction unit and the replacement of natural gas with renewable gases. With these subsequent steps, the reduction will increase to approximately 7,2 megatons, with an intermediate step of 6,6 megatons starting in 2032.
Role of biomethane
Biomethane is explicitly mentioned as the next realistic option to replace natural gas in the reduction system. The use of biomethane or hydrogen is estimated to reduce CO2 emissions by approximately 1,2 megatons per year. A published memo outlines the goal of purchasing approximately half a billion cubic meters of biomethane annually, equivalent to about 5 terawatt hours, starting in 2032, with increasing volumes in the run-up. Tata is primarily looking at contracts in other European countries and, eventually, Ukraine.
The public support structure is divided into three parts. A subsidy of up to €1,2 billion has been earmarked for the construction of the new plant. A maximum of €600 million has been reserved for additional environmental measures. A loan of up to €200 million has been included for the initial years of renewable gas deployment. This loan will be fully or partially waived in the event of successful tenders for biomethane and/or hydrogen, otherwise it will be repaid with interest and possibly a penalty. The total support remains capped at €2 billion. A clawback will also be implemented to prevent overcompensation.
Health and living environment
The declaration of intent links the technical transition to concrete goals for the surrounding area. In Wijk aan Zee, the contribution to particulate matter must be reduced by at least 35 percent compared to 2019. A significant reduction in lead and nitrogen emissions has also been agreed upon. On-site measures, such as windbreaks and shelters for the raw material fields, will be implemented between 2027 and 2029.
The declaration of intent is not binding. The government will launch a public consultation based on the text. The parties aim to reach a binding, customized agreement by September 30, 2026. If this is not possible, either party can terminate the declaration of intent.
Source: Tata Steel
Photo: Jan Kranendonk (Adobe Stock)
