Tata Steel gets Dutch backing for €2 billion green transition
Tata Steel Holland (TSN) provided financing support from the Dutch government and took an important step in the plan to move into the production of low carbon and sustainable steel.
The Indian steel manufacturer signed a non -binding agreement with the Dutch government to switch to low -carbon steel production and clean operations in Ijmuiden factory. Both sides will continue to work on the last special agreement in the coming months, including the Dutch elections and the establishment of a new government.
Tata Steel General Manager TV Narendran, “There are many problems to be solved in front of us,” he said. “Minister Hermans, his colleagues in the cabinet, colleagues in the cabinet and the Dutch Government and the State of North-Holland, Tata Celik, who is engaged in a constructive and careful way to complete this first step with us in the last 2 years, is a sustainable and careful way for Nederland,” he said.
After Grant
The latest support follows the £ 500 million pound grant by the British government with a £ 1.25 billion Green Steel project in Port Talbot. As part of the acquisition of Corus Steel in Europe in 2007, Tata Steel had Port Talbot and Ijmuiden factory in the Netherlands and the Netherlands.
The TSN also applied for about € 0.3 billion from the EU Innovation Fund. Some funds for the green transition will also come from its own cash flows, project debt and parent company Tata Steel’s support.
“TATA’s carbonization plans have the blessings of Parliament. The company continues to interact with the government in the Hague,” Kotak analysts Sumangal Nevatia, Siddharth Mehrotra and Keshav Kumar, “Tata’s carbonization plans. “US exposure is ~ 10% of TSN (Tata Steel Netherlands) sales (~ 0.7 mn ton) and is extremely profitable.
Tata Steel first expressed the need for state support for the transition of Green Steel four years ago and has been controversial with the Netherlands since then. At the beginning of this month, Narendran jumped the India Steel Conclave to travel to the Netherlands for another meeting.
Set to remove it from the service
TSN will benefit from high oven 7 and cola and gas plant 2, and initially build a direct reduced railing (DRP) and an electric arc oven (EAF) using natural gas and more scrap. This will reduce carbon emissions 5.4 million tons from the maximum of 12.6 million tons.
Blast ovens are large units using cola heat to convert the iron ore into a purified melted metal for more processing. The EAFs perform this process using electricity without any cola, so it cuts emissions.
Steelmaker has not yet completed the complete engineering of the integrated project and therefore has not completed the total expenditure.
“We are also closely monitoring policy developments on the difficulties of the 2030 CO2 reduction targets in the EU and the Netherlands Parliament,” Narendran said.
