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Tata Steel Nederland Signs JLoI with Dutch Government to Accelerate Decarbonisation at IJmuiden Plant.

Economy Business | Dated: 02 Oct 2025

In September 2025, Tata Steel Limited signed a non-binding Joint Letter of Intent (JLoI) with the Government of the Netherlands and the Province of North Holland to advance the decarbonisation of its Tata Steel Nederland (TSN) operations at IJmuiden. The initiative aims to reduce emissions, enhance air quality, and align with the Netherlands’ climate goals.

🎯 Key Highlights:

  • - The Dutch government may provide financial support of up to €2 billion, while an additional €300 million has been applied for under the EU (European Union) Innovation Fund (IF). The remaining project costs will be covered through TSN’s internal cash flow, project-level debt, and funding from Tata Steel Limited.
  • - In Phase 1, Tata Steel Nederland will decommission Blast Furnace 7 and Coke and Gas Plant 2. These will be replaced with a Direct Reduction Plant (DRP) and an Electric Arc Furnace (EAF), initially operated using natural gas and later transitioned to hydrogen and biomethane to ensure greener steel production.
  • - The project is expected to reduce annual CO₂ emissions by 5.4 million tonnes, down from a peak of 12.6 million tonnes (MT). Additionally, the share of scrap usage in steelmaking will rise from 17% in 2019 to 30%, further cutting the carbon footprint.

💡 Other Important Facts:

  • (i) The final investment decision will be taken by Tata Steel’s Board after addressing regulatory approvals, financial structuring, and policy clearances. Detailed engineering and capital expenditure (CapEx) plans are still under development.
  • (ii) The non-binding JLoI establishes the framework for low-carbon steel production and public health improvements.
  • (iii) It is aligned with the EU Carbon Border Adjustment Mechanism (CBAM) and the Dutch 2030 CO₂ reduction targets, with support from trade unions ensuring smooth project execution.

📚 Test Your Knowledge:

How much financial support may be provided by the Dutch government for Tata Steel Nederland’s decarbonisation project?

Correct Answer: €2 billion

🚀 Quick Recap: