The three parties consider green hydrogen as vital for reaching climate targets and building a more circular economy, for example by combining it with emissions from steel manufacture to make new products.
As a first step, the parties will study the feasibility of a 100MW water electrolysis facility to produce up to 15,000 tons of hydrogen per year as well as oxygen at Tata Steel’s IJmuiden site, near Amsterdam. By using renewable electricity, the initial unit will enable a carbon saving of up to 350,000 tons of CO2 per year, equivalent to the emissions of more than 40,000 households. A final investment decision is expected in 2021. The partner companies have the ambition to further scale up the technology.
Exploring different routes
Nouryon will operate the facility, while Tata Steel will use the oxygen to further enhance the sustainability of its production processes. The parties will jointly explore different routes to use hydrogen for turning steel mill emissions into useful chemicals and products. The Port of Amsterdam will focus on the infrastructure for further distribution of green hydrogen, which will be the basis for the development of new industries and zero-emission transport in the Amsterdam area.
“This partnership builds on our existing initiatives to support the development of a sustainable chemical industry,” said Knut Schwalenberg, Managing Director Industrial Chemicals at Nouryon. “Green hydrogen is a realistic alternative for fossil-based raw materials and enables new forms of green chemistry, such as using steel mill gas, CO2, or waste to make plastics and move to new, circular value chains.”
“Tata Steel is a strong supporter of hydrogen as a facilitator of the energy transition,” said Hans Fischer, CEO of Tata Steel Europe. “This project could be a stepping stone to make large quantities of affordable hydrogen available in the future to enable us to become a CO2 neutral steel producer.”
Koen Overtoom, CEO Port of Amsterdam, adds: “Large-scale production of green hydrogen, fueled by offshore wind, will enable the Amsterdam-North Sea canal region to make a leap forward towards a climate neutral circular industry. It will support our ambition towards synthetic fuels and synthetic kerosene and emission-free mobility.”
The recently presented Dutch Climate Law sets an ambitious CO2 reduction target of 49% by 2030 compared to 1990. The parties believe that green hydrogen can make a significant contribution towards this target and aim to reach sufficient scale to absorb all emissions from Tata Steel’s plant in IJmuiden and use it for the production of new materials. The development of the green hydrogen cluster will also enable emissions-free buses and heavy transport in the entire Amsterdam area.