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Tata Steel Nederland (TSN) will acquire the Vattenfall power plants in the IJmond region. A definitive agreement has been signed today by both parties. As part of the transaction, all employees of the Vattenfall power plants in the IJmond region will become employees of TSN. Ownership of the plants will transfer to TSN on January 1, 2026. Financial details are not disclosed.
Hans van den Berg, CEO of Tata Steel Nederland: “Power plants of Vattenfall and its predecessors have been a logical combination with our steel production process for almost a century. The plants are unique because, unlike any other power plant in the Netherlands, they are fuelled by our residual gases, in this case from our steel production process. With the current contract expiring at the end of 2025, this is the moment to change ownership: By owning the power plants, Tata Steel Nederland will be able to manage the complex, step-wise transition from its existing steelmaking process to a low carbon, green steel operation. Therefore, this transfer of ownership is a significant and tangible step in Tata Steel Nederland’s transition to green steel.”
Alexander van Ofwegen, Senior Vice President and Head of Business Area’s Customers & Solutions and Heat of Vattenfall: “Vattenfall supports Tata Steel’s ambition to transition to more sustainable steel production. In this transition, these gas power plants in Velsen are still needed. This agreement is therefore a win-win situation. For the employees of the plants as the work will continue under similar employment conditions and a win for Tata Steel in gaining more control over the entire chain in the transition to low carbon steel making.”
The Vattenfall power plants in the IJmond region consist of three units. The power plants 24 and 25 in Velsen-Noord generate electricity predominantly from the residual gases from the steel production process. This electricity is used by TSN in its operational processes. The third unit is IJmond 01, a combined heat and power plant on the Tata Steel site in IJmuiden. This unit is fuelled by the residual gases from the steel production process and it produces electricity and steam. This electricity and steam are also used in the steel plant’s operational processes. The three units employ approximately 116 employees.
The works councils of both Vattenfall and TSN have issued their advice to the transaction. Regulatory authorities, among which the Netherlands Authority for Consumers and Markets (ACM), have approved the change of ownership of the power plants. Ownership of the plants will transfer to TSN on January 1, 2026.
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