Tata Steel invests 65 million euro in next phase hydrogen route

Tata Steel Nederland has signed contracts with three companies –
McDermott, Danieli and Hatch – for the further technical preparations of the hydrogen
route in Ijmuiden in The Netherlands. Tata Steel wants to transfer to green steel
manufacturing in a clean environment as fast as possible. All three companies have their
own specific expertise that collectively is needed to help Tata Steel shape and deliver
the hydrogen based steel manufacturing. The cost for this first development step are in
excess of 65 million euros and will result in an engineering package that forms the basis
for a final permitting and project planning.
The overall project is led by the Tata Steel internal project and sustainability team, in close
support of the main delivery partners. McDermott is responsible for the construction input and
support of the technical project management. Danieli is responsible for the engineering design
for the plant and technology that delivers the Direct Reduced Iron (DRI), the 1st step in the
iron making process. Hatch is the technology licensor of the electric furnaces (REF) that melt
the DRI and help to reduce the oxygen content further thereby improving the final steel quality.
The REF and DRI plant are closely coupled to form an integrated production system.
Climate neutral before 2045
“We recently signed agreements about our future with two ministries and the province of North
Holland. In doing so, we have committed to being CO2 neutral before 2045 and emit between
35 to 40% less CO2 before 2030. This will primarily be achieved via the hydrogen route where
the blast furnaces are replaced with modern clean steel making technology that uses hydrogen
or gas instead of coal”, explains Hans van den Berg, CEO of Tata Steel Nederland.
Unique operation on the Tata Steel site
“What we do is a complicated and unique operation,” explains Annemarie Manger,
sustainability director of Tata Steel Nederland. “The new plants will be built on our site while all
the current plants will remain in operation until the new installations are up and running. That
requires intense integration between facilities and close collaboration between all parties and
our people. The coalition that is now formed with McDermott, Danieli and Hatch marks the start
of the basic engineering to define our plans more specifically.
A lot happened in one year
The switch to green steel is the biggest change in the company’s more than 100-year history.
It is a technological tour de force with many deep consequences. In the past year, a lot of hard
work has been done in various areas to prepare for this transition. For example, Tata Steel has
signed an agreement with the national grid operator TenneT for a direct connection to the
national electricity grid in order to be able to use green energy in her future operations. The
layout of the new facilities and the physical integration inside existing plant as especially
challenging, and has strong impact on the project execution, the overall operational logistics
and the environmental impact.
Talks have started with the unions and potential impacted employees about the change to
ensure all employees are fully included During the summer, we organised a first information
event that was attended by over 80 companies and suppliers. These companies are typically
part of the Tata Steel operations and take care of a large part of the operational maintenance
on our site in IJmuiden. The early information and inclusiveness helps them to better assess
the impact of our change. The Tata Steel Academy (the company’s own training institute) has
set to work to determine which competencies and qualifications our employees need and is
developing new teaching modules. The Academy is also preparing lessons for secondary
school students in the region by offering a practical module on how to make hydrogen.