Tata Steel Signs Joint Letter of Intent with Dutch Government for Decarbonisation and Health Project

Tata Steel and its Dutch subsidiary, Tata Steel Nederland (TSN), have entered into a non-binding Joint Letter of Intent (JLoI) with the Government of the Netherlands and the Province of North-Holland. 

The agreement outlines a framework for an integrated decarbonisation and health measures project at TSN’s IJmuiden facility, setting the stage for a long-term transition to low-carbon steelmaking while improving the living environment around the plant.

Key Highlights of the Agreement

The agreement lays out the shared objectives of all parties but stops short of binding commitments on execution or subsidies. It signifies the first phase of discussions that will lead to a tailor-made agreement, subject to policy, permitting, and investment approvals.

As part of the initial phase, TSN plans to:

• Decommission Blast Furnace #7 and Coke and Gas Plant 2, replacing them with a Direct Reduction Plant (DRP) and Electric Arc Furnace (EAF) to cut annual Scope 1 CO₂ emissions by 5.4 million tonnes.
• Add Carbon Capture and Storage to the DRP to further reduce emissions by 0.6 million tonnes, and eventually transition to biomethane or hydrogen to cut another 1.2 million tonnes.
• Implement measures to reduce dust, noise, odour, and emissions of harmful substances through new covers, windbreaks, and dust control investments at processing facilities.
• Increase scrap intake from 17% in 2019 to 30% to boost circularity and improve slag reuse.

The Dutch government intends to support the project with up to €2 billion, while TSN has applied for an additional €0.3 billion from the EU Innovation Fund. Remaining funding is expected to come from Tata Steel Nederland’s internal cash flows, project financing debt, and contributions from Tata Steel Limited.

CEO’s Comments

As per the exchange filings, T V Narendran, CEO & Managing Director of Tata Steel and Chairman of Tata Steel Nederland, expressed gratitude to the Dutch government and stakeholders, noting that the initiative represents the first step in a “very complex transition.” He stressed the need to resolve internal engineering preparedness, external policy matters, statutory approvals, and cost optimisation before arriving at a final investment decision.

Read More: Who Is Shailesh Chandra, Tata Motors’ New MD & CEO From October 1?

Tata Steel Share Price Performance 

As of September 30, 2025, at 11:16 AM, the Tata Steel share price is trading at ₹169.64 per share, reflecting a surge of 0.39% from the previous closing price. 

Conclusion

The JLoI signals Tata Steel’s intent to advance its European operations towards sustainability while addressing community health concerns. With significant funding support from the Dutch government and alignment with EU climate objectives, the initiative could transform the IJmuiden facility into one of Europe’s most competitive low-carbon steel plants, reinforcing Tata Steel’s commitment to achieving Net Zero by 2045.