IJMUIDEN – Tata Steel Holland has launched Zeremis Carbon Lite, steel with an allocated CO2 reduction of up to 100%. The lower CO2 intensity is based on CO2 savings that Tata Steel Netherlands has achieved since 2018 and is certified by the independent verification agency DNV. With Zeremis Carbon Lite, the company is meeting the growing demand for low-carbon steel in consumer-oriented industries such as the automotive, packaging and white goods sectors.
Tata Steel Netherlands has the ambition to reduce its CO2 emissions by 500 kilotons before the first Direct Reduced Iron (DRI) installation1) is put into operation. This should enable the company to supply at least 200 kilotonnes of CO2-neutral equivalent steel on an annual basis. More green steel products will follow in the near future.
The market is ready for greener steel
“In the markets we serve, we are seeing a growing interest in more environmentally friendly steel. This demand is especially increasing among our consumer-oriented customers, who themselves have ambitious CO2 targets. By using low-carbon steels, they can reduce their so-called Scope 3 emissions2) and thus make their product range more sustainable, “says Hans van den Berg, CEO of Tata Steel Netherlands.
“We are convinced that green steel is the future. By 2030, we will make steel in a different way, with less impact on our immediate environment and neighbors. Thanks to our current CO2 savings, we can already offer our customers a significant amount of high-quality low-carbon steel. This makes the launch of Zeremis Carbon Lite an important step, as passing on our savings to our customers helps us accelerate our transformation into a more sustainable steelmaker. “
Tata Steel has been working for years to reduce its CO2 emissions. As a result, the steel plant in IJmuiden is already one of the most CO2-efficient steel mills in the world3). The CO2 intensity of the steel produced in IJmuiden is about 7% below the European average and almost 20% below the global average. Nevertheless, Tata Steel feels the urgency to further reduce its environmental impact.
To reduce emissions from large-scale steel production, Tata Steel wants to make steel based on green hydrogen. The company aims to reduce CO2 emissions by at least 30% by 2030 – when the first DRI installation is taken into use. By 2035, emissions should be 75% lower. This is when the company starts producing large quantities of high quality green steel. The ultimate goal is to produce completely CO2-neutral steel by 2050.
Independent validation confirms approach
The first offering of Zeremis Carbon Lite is a reduction in CO2 intensity of 30% 4) compared to the European average for steel products, such as hot or cold rolled steel. If customers have higher CO2 reduction targets, additional CO2 reduction certificates can be awarded to ensure that these targets, even CO2-neutral targets, are met.
The independent verification from DNV aims to ensure that the method used by Tata Steel to calculate the reduced CO2 emissions is robust and that it is correctly calculated and allocated. DNV has performed a limited security engagement in accordance with International Standard on Assurance Engagements 3000, and has used the WRI / WBCSD GHG Protocol for Project Accounting and Reporting Standard as part of the criteria that DNV performed the audit with confidence in relation to.
1) DRI is a steelmaking technology that uses hydrogen instead of coal to make iron. When using green electricity and hydrogen, the CO2 emissions from the primary steel process are significantly lower than when using blast furnaces. The DRI technology also makes it possible to use scrap, which benefits the circularity.
2) Greenhouse gas emissions are subdivided into three groups of the GHG protocol, also known as ‘Scopes’. Scope 1 includes direct emissions from sources owned or controlled by a company. Scope 2 includes indirect emissions due to the production of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions within a company’s value chain.
3) Tata Steel’s factory in IJmuiden is in second place worldwide in the benchmark for CO2 intensity per. location (CO2 report World Steel 2021, BF-BOF (blast furnace oxygen steel furnace) route).
4) Market research shows that a 30% reduction in CO2 intensity is in line with the 2030 targets for many steel users to reduce their Scope 3 emissions.