Tata Steel Nederland has signed a memorandum of understanding with Ford of Europe to supply the carmaker with Zeremis green steel as the steel mill in IJmuiden transitions to green hydrogen-based steelmaking. Securing the future availability of more environmentally friendly produced steel is essential for Ford to be able to achieve its carbon neutrality goal for 2035.
The deal makes Ford the first customer to commit to offloading the green steel that Tata Steel plans to produce via the hydrogen route, which is more sustainable and cleaner than the current steelmaking method.
With Ford already targeting the use of low-carbon steel in its all-new, all-electric mid-size crossover, which will start production in Europe in 2023, the companies intend to explore opportunities to use other green steel products. This includes, for example, Tata Steel’s recently launched Zeremis Carbon Lite, steel with an allocated carbon footprint reduction of up to 100 percent. The lower CO2 intensity is based on CO2 savings realized within Tata Steel Nederland and is verified by an independent expert, DNV.
Much hope rests on the green steel initiative
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Hans van den Berg, chairman of the board of Tata Steel Nederland, said that while the company is transitioning to become a producer of large quantities of high-quality green steel, it can already supply customers with a significant amount of high-quality low-CO2 steel today, thereby making their product offering more sustainable .
“By aligning our sustainability ambitions with customers, like Ford, we can create an early market for green steel, accelerate the transition and meet the expectations of society at large,” he said.
In the last ten years, Tata Steel has introduced over 60 innovative products, ranging from new steels that make cars lighter and steels that double corrosion resistance to make them last even longer, to steels that are easier to process by car manufacturers and steels that improve the efficiency of the (electric) powertrain.