The Netherlands offers €2B to help Tata Steel cut emissions at its IJmuiden plant by switching to low-carbon production.

The Dutch government has proposed up to €2 billion in support for Tata Steel Nederland’s IJmuiden plant decarbonization, marking a major step in transitioning to low-carbon steel production. The non-binding agreement, signed on September 29, 2025, includes plans to replace blast furnaces with a Direct Reduced Iron Plant and Electric Arc Furnace, aiming to cut annual CO2 emissions by 5.4 million tonnes. Tata Steel seeks an additional €300 million from the EU Innovation Fund, with remaining costs covered by company funds and debt. Final project details, including financing and engineering, depend on a binding agreement and resolution of regulatory and permitting challenges, including EU climate policies. The project is part of a broader effort to modernize Europe’s steel sector and ensure long-term sustainability.