Tata Steel Netherlands produces various types of steel, an important raw material for many products and this production provides many jobs. On the other hand, Tata Steel is also the largest emitter of CO2 in the Netherlands and causes a lot of damage to health. Making the steel industry more sustainable is therefore important for local residents, the climate and the economy.
In this report, CE Delft, commissioned by Greenpeace, has compared two sustainability plans for steel production at Tata Steel Netherlands, with regard to the effects on health, climate and price of steel production: the plans of Tata Steel itself and the proposals of Health Ultimatum. In Tata Steel’s plans, the factories will be converted to a sustainable production process called DRP-EAF over the next 10-15 years. In the Health Ultimatum plans, Tata Steel is switching to a process in which semi-finished products (HBIs) are imported that are further processed into steel in IJmuiden via a so-called EAF. In this plan, significantly less steel will be produced in Ijmuiden in 2030, not 7 but 4 Mton per year.
The results show that both plans can ensure that Tata Steel emits fewer air pollutants and can also significantly reduce CO2 emissions. The Health Ultimatum plan has the greatest and fastest effect. We also show that the cost price of sustainable steel in both plans will be higher than with the current production route.
Many technical and economic developments are still required in the coming years to implement both sustainability plans. Both will lead to a sharp increase in demand for scrap and electricity. Tata Steel’s plans require a lot of natural gas and CCS capacity or hydrogen. The Health Ultimatum plan needs semi-finished products. This demand for hydrogen, CCS capacity and semi-finished products cannot currently be met in the Netherlands.