Tata Steel Nederland has signed a letter of intent with the Dutch national government and the Province of North Holland to accelerate its transition toward low-carbon steel production at its IJmuiden site.

The agreement paves the way for one of the largest industrial transformations in the Netherlands, combining massive technological investments with strong state and EU support.

A Shift to DRI + EAF Technology

At the core of the plan is the replacement of Blast Furnace 7 and the KGF2 coke plant with a Direct Reduction Iron (DRI) installation and Electric Arc Furnace (EAF).
• The DRI facility will initially run on natural gas but is designed to switch to hydrogen once it becomes widely available.
• Alongside, the company aims to increase scrap usage from ~17% to about 30%, reducing dependency on virgin iron ore.

This transition is expected to cut CO₂ emissions by roughly 40% by 2030, with full carbon-neutrality targeted for 2045.

Financing and Support

The transformation requires billions in capital. Tata Steel Nederland is seeking up to €2 billion in state support, while also applying for about €300 million from the EU Innovation Fund. These funds are positioned as “catalysts” to de-risk the transition and secure long-term competitiveness of Dutch steelmaking.

Environmental and Community Impact

Beyond CO₂ reductions, the project includes measures to lower NOₓ, dust, odors, and noise emissions, directly addressing community concerns. The company has already gone through environmental impact assessments and public consultations with residents of IJmuiden and surrounding areas.

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Fobberg Reviews Comment:
This is not just a plant modernization — it’s one of the largest “green steel” commitments in Europe. The scale of investment, reliance on hydrogen readiness, and the involvement of state and EU funds show how steelmaking is becoming a test case for industrial decarbonization policy across the bloc.