Tata Steel acquires three Vattenfall plants, aims for sustainable energy production

Tata Steel Netherlands will take full ownership of the three Vattenfall power plants near its site early next year. The companies have signed a final agreement to complete the transfer. According to the companies, the staff at the IJmond-region power plants will transfer to Tata Steel as well. The firms have not revealed the purchase price.

Tata Steel had already obtained clearance from the Netherlands Authority for Consumers and Markets (ACM) for the acquisition. The deal involves two electricity plants in Velsen-Noord and a combined heat and power plant on Tata Steel’s own site. All three plants use residual gases produced during steelmaking.

The power plants turn steelmaking process gases (residual gases) into electricity and steam, helping to efficiently recycle gases that would otherwise go to waste. Tata Steel says Vattenfall produces around 2.0 billion kWh of electricity from the residual gases, which is roughly enough to power over 823,000 households for a year.

Tata Steel CEO Hans van den Berg said the plants are key to the company’s shift toward more sustainable steel production. For Vattenfall, selling the plants fits its strategy to lower its own CO2 emissions.

Tata Steel’s environmental impact report (EIA) for the “Green Steel / Heracless” project assumes that the VN25 plant (Velsen 25) will primarily operate using the residual gases produced by Tata Steel.

However, when residual gases like blast furnace gas are insufficient, natural gas can be co-fired to maintain a continuous energy supply. The environmental impact report states that the IJmond plant (IJM‑01) would function as a backup during maintenance or unexpected outages.

A recent agreement between the Dutch government and Tata Steel targets a reduction in industrial emissions. The plan includes CO₂ capture and storage (CCS) and envisions partial use of biomethane by Tata Steel.