Tata Steel Nederland has signed a memorandum of understanding with Ford in Europe to supply the carmaker with Zeremis green steel once the IJmuiden steelworks switches to green hydrogen-based steelmaking. Securing the future supply of more environmentally-friendly produced steel is essential to enable Ford to reach its 2035 carbon neutrality target.

The agreement makes Ford the first customer committed to offtake the green steel that Tata Steel plans to produce via the hydrogen route, which is more sustainable and cleaner than the current steel making method.

As Ford already targets the use of low-CO2 steel in its all-new, all-electric, medium-sized 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 per cent. The lower CO2 intensity is based on CO2 savings realised within Tata Steel Nederland and is verified by independent assurance expert, DNV.

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Hans van den Berg, Chairman of the Board of Management of Tata Steel Nederland, said, 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 and thus, make their product offering more sustainable.

"By aligning our sustainability ambitions with customers, such as Ford, we can create an early market for green steel, speed up the transition, and meet the expectations of society at large," he said.

In last ten years, Tata Steel has introduced over 60 innovative products, ranging from new steels that make cars lighter and steels that double the corrosion resistance so that they last even longer, to steels that are easier to process by car manufacturers, and steels that improve the efficiency of the (electric) drive train.