Tata Steel, Dutch government sign joint letter of intent on low CO2 steel and health measures

Homegrown Tata Steel Ltd on Monday (September 29) said it has signed a non-binding Joint Letter of Intent (JLoI) with the Government of the Netherlands and the Province of North-Holland for an integrated decarbonisation and health measures project at its Tata Steel Nederland (TSN) operations.

The JLoI sets out the aims and objectives of the parties for the first phase of transition to low CO2 steel production and to improve the healthy living environment around the IJmuiden site. It is not binding on the execution of the projects or subsidies, but commits the parties to good faith negotiations toward a tailor-made agreement.

This agreement, including commitments related to the period before its conclusion, will be worked upon in the coming months, including after the Dutch elections and formation of the new government. The Tata Steel Board will consider the final investment decision in the process of reaching a binding agreement.

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The company said significant work remains before an investment decision can be taken. Internal priorities include completing engineering preparedness for the complex transition and addressing statutory and regulatory aspects related to coke and gas plants. External issues include resolving critical policy matters impacting the investment case, securing permits, and agreeing on the detailed terms of the binding agreement.

Tata Steel added that it is closely monitoring policy developments in the EU on the Carbon Border Adjustment Mechanism (CBAM) and in the Dutch Parliament on 2030 CO2 reduction targets. In parallel, the company is prioritising, optimising and sequencing its capital expenditure to ensure affordability for all stakeholders.

Shares of Tata Steel Ltd ended at ₹169.05, up by ₹1.60, or 0.96%, on the BSE.
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