Tata Steel gets Dutch support for € 2 billion green transition

Copyright © HT Digital Streams Limit all rights reserved. Dipali Banka 2 min read 29 Sept 2025, 11:31 pm is a general view of the Tata Steel factory in Ijmuiden, the Netherlands. Lying Photo (Reuters) Summary Tata Steel Netherlands obtained € 2 billion in funding from the Dutch government to transition to low-carbon steel production. This follows a £ 500m grant from the UK for a similar project, as the company aims to significantly reduce carbon emissions at the Ijmuiden plant. Tata Steel Netherlands (TSN) has obtained up to € 2 billion in financing support from the Dutch government, which is an important step in the steelmaker’s plan to switch operations to low-carbon and sustainable steel production. The Indian steel maker signed a non-binding agreement with the government of the Netherlands to switch to low-carbon manufacturing and cleaner operations at the Ijmuiden plant. Both parties will continue to work on the final agreement in the coming months, even after the Dutch election and the formation of the new government. “There are many problems to solve and work what needs to be done before us,” said TV Narendran, CEO of Tata Steel. “We would like to thank Hermans, her colleagues in the Cabinet and the team of the Dutch government and of the province of North Holland, who have worked with us constructively and carefully for the past 2 years to create this first step in our journey to a sustainable long-term future for Tata Steel Netherlands,” Narendran said late Monday. Following the award of the latest support, the £ 500m granted by the British government in 2024 for its £ Steel Steel project of £ 1.25bn in the UK’s Port Talbot. Tata Steel owned both Port Talbot in the UK and the Ijmuiden plant in the Netherlands as part of the acquisition of Corus Steel in Europe in 2007. TSN also applied about € 0.3 billion from the EU innovation fund. Some of the funding for the green transition also comes from its own cash flow, project debt and support from parent company Tata Steel. “Tata’s decarbonization plans have the blessings of parliament. The company continues with the government in The Hague,” said Sumangal Nevatia, analysts of Kotak, Siddharth Mehrotra and Keshav Kumar in a July 31 note. “US exposure is ~ 10% of the sales of TSN (Tata Steel Netherlands) (~ 0.7 million tons) and is very profitable. The company has negotiated with few customers due to rates on rates, while reservations with others are going on.” Tata Steel first expressed his need for government support for the Green Steel transition four years ago and has since held ongoing discussions with the Netherlands. Earlier this month, Narendran skipped the India Steel Conclave to travel to the Netherlands for another round talk. Set to decomposition TSN will refute its explosion oven 7 and Coke and gas plant 2 and build a directly reduced iron plant (DRP) and an Electric Arc Furnace (EAF), initially using natural gas and more scrap. This will reduce carbon emissions by 5.4 million tonnes from the current maximum of 12.6 million tons. Blast ovens are large units that use the heat of Coke to convert iron ore into purified melted metal for further processing in steel. EAFs do this process using electricity without any Coke, and thus reduce emissions. The steel maker has not yet completed the full engineering of the integrated project, and has therefore not completed the total spending. “We also monitor the EU policy developments on CBAM and in the Dutch Parliament closely about the challenges of the 2030 CO2 reduction targets,” Narendran said. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More topics #tatasteel read the following story