Manufacturing giant Tata Steel will receive €2bn in public funding from the Dutch government to support its transition toward lower-carbon steelmaking at the company’s IJmuiden site in North Holland.
The investment forms part of a wider package of €4bn to €6.5bn aimed at phasing out coal-fired blast furnaces in favour of gas-based direct reduction technology, while also exploring carbon capture, biomethane, and green hydrogen.
According to a joint letter of intent signed with the Dutch government and the Province of North Holland, the first phase of the programme will see one of the site’s two coal-fired plants replaced with plants fuelled by natural gas, before later switching to hydrogen.
Steelmaking is one of the world’s most carbon-intensive industries, responsible for around 7% to 9% of global greenhouse gas emissions. The traditional blast furnace route releases around 1.6 to 2 tonnes of CO2 for every tonne of crude steel produced.
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