18 July 2022
Corporate News

Agreements about CO2 reduction and improving living environment

Tata Steel background

The Province of North Holland, the Ministry of Infrastructure and Water Management, the Ministry of Economic Affairs and Climate and Tata Steel Nederland today signed an Expression of Principles on sustainability. 

By 2030, Tata Steel wants to have its CO2 emissions reduced by 5 Megatons and by 2045, it wants to be CO2 neutral. Additional ambitions for improving the living environment have also been included in this new Expression of Principles.  Although the Expression of Principles is not binding, this statement is indicative. The document serves as a framework for the customised agreement between the government and Tata Steel.

Reducing CO2
An important part of making Tata Steel more sustainable is reducing CO2 emissions. In the Expression of Principles, Tata Steel Nederland expresses the ambition to reduce CO2 emissions by 5 Megatons by 2030 and to be fully climate-neutral by 2045 via an accelerated process. In September of last year, Tata Steel decided to switch from underground storage of CO2 to the production of green steel with the Direct Reduced Iron production process. This process is more sustainable and cleaner than the current steel-making method, and uses green hydrogen for production. The transition to this steel-making method is complex, as the entire steel-making process has to be adapted and existing blast furnaces replaced.

Minister of Economic Affairs and Climate, Micky Adriaansens: “We want Tata Steel to become cleaner faster. Fewer CO2 emissions and limiting the impact on the living environment: with this Expression of Principles, the company and the government set out their ambitions. We are now elaborating this further in the customised agreements with the company. An important milestone. Together with the Province of North Holland, the State Secretary and I are investigating how we can support the plans.” 

Improving the environmental and health situation before 2030
The amended Expression of Principles includes additional ambitions for reducing the company’s impact on the living environment. For example, it has been agreed that Tata Steel Nederland will conduct research into further improving the environmental and health situation prior to the transition in 2030. But also to investigate the possibility of the earlier closure of business activities, such as the Coking and Gas Plant 2. 

State Secretary for Infrastructure and Water Management, Vivianne Heijnen: “I believe Tata Steel’s future can only be clean and sustainable. That is made very clear in this Expression of Principles. It also includes additional ambitions for improving the living environment by 2030. We’re keeping a finger on the pulse so the ambitions become reality. Improvements are needed for the climate, the environment and the health of local residents.”

Realising the ambitions together
The government, the Province of North Holland and Tata Steel underline the importance of more sustainable and clean steel production for the Netherlands. In the Expression of Principles, the governments indicate that they are prepared to investigate how the plans and projects to transform the company into a more sustainable and clean steel plant can be supported. In addition to any necessary financial support, it also involves timely decision-making about permit applications and the realisation of the necessary hydrogen infrastructure. Attention is also paid to the nitrogen issue. 

This Expression of Principles determines the direction that will be further elaborated in the coming period in the binding customised agreements between Tata Steel and the government.

Hans van den Berg, CEO at Tata Steel: “Our ambition is to produce green steel in a clean environment as quickly as possible. This means a whole new course in which we focus on hydrogen. This enables us to make a significant contribution to the climate objectives. We feel supported by the government that wants to tackle this challenge with us.”

Jeroen Olthof, member of the Provincial Executive for Quality of Life, Environment and Health: “It’s important for the inhabitants of IJmond that we make joint agreements in the Expression of Principles about the switch to sustainable steel production and that health is part of this. The Expression of Principles is a great first step, which should be worked out as soon as possible in an implementation programme.”


About Tata Steel’s European operations
Tata Steel is one of Europe's leading steel producers, with steelmaking in the Netherlands and the UK, and manufacturing plants across Europe. The company supplies high-quality steel products to the most demanding markets, including construction and infrastructure, automotive, packaging and engineering. Tata Steel works with customers to develop new steel products which give them a competitive edge. The Tata Steel group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes. It is one of the world's most geographically-diversified steel producers, with operations and a commercial presence across the world. 

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