The support comes as part of a €4bn–€6.5bn ($4.2bn–$6.8bn) package backing a shift to gas-based direct reduction technology, while also exploring carbon capture and biomethane.
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.
Dutch State Secretary for Infrastructure Vivianne Heijnen said the funding marks “an important step in reducing the environmental impact of one of the country’s largest industrial emitters.”
Tata Steel said the transition would not only support the Netherlands’ climate targets but also improve local air quality around the IJmuiden site, which has faced health and environmental concerns in recent years.
The company plans to finalise an integrated decarbonisation and health measures agreement with the government in 2026, with the first replacement plant scheduled before 2030.
Last year, the steelmaking giant announced plans to import liquid hydrogen produced in Norway to the Netherlands for use in its steelworks.
Green steel adoption over a decade away without cheaper hydrogen: IDTechEx
IDTechEx has forecasted that the widespread adoption of hydrogen-based direct reduced iron (DRI) production is over a decade away, unless hydrogen becomes much cheaper, and infrastructure is implemented at pace.
The UK-based independent research and consulting firm found that while hydrogen DRI is leading the green steel project pipeline globally, especially in Europe, the Middle East, the US, and China, the most immediate barrier is cost.
The report highlighted that steelmakers need low-carbon hydrogen at $2–3/kg, far below the current $4–8/kg for green hydrogen, which has prompted companies like ArcelorMittal to delay final investment decisions (FID).
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