"As long as we don’t become climate neutral, we cannot become a sustainable business"

“Sustainability is a driver for creating value”, explains Roger Steens, Director of Sustainability at Tata Steel in Europe. After all, a business can only be successful on the long term, if it is in line with the needs and values of the society, where its operations take place. Balancing financial value therefore always must be balanced with environmental but also social values, says Steens.

But according to Steens, sustainability for Tata Steel does mean much more than just balancing different interests. “The UN Sustainable Development Goals define in a very normative way, what we should achieve in society,” says Steens. For Tata Steel in Europe this means that the business value has to be seen in context with these development goals in the long run. Steens says: “As long as we don’t become climate neutral, we cannot become a sustainable business. After all, a business can only be sustainable, if it’s part of the solution.”

Of course, becoming climate neutral is a specifically challenging task for the steel industry. Steens admitted that the sustainability process is also influenced by national and international targets. “Within the Dutch debate, we have to conclude by the end of this year how to reduce CO2”, Steens said. “National governments may be more ambitious, which sometimes is complicating debates.”

“When it comes to sustainability, Tata Steel is taking a systems perspective”, explains Steens. Linking the issue of CO2 reduction to material and product circularity is a central idea of this way of thinking.  “CO2 reduction and circular economy is very much linked. Steel in that sense is a great material because it allows for refurbishing. Also, steel can be recycled without a great loss of quality.” According to Steens, this means that material and product loops should be designed as effective as possible.

“But this does not exclude our responsibility to put new steel into the system with the lowest CO2 possible”, explains Steens. Obviously the most effective way to reduce CO2 is moving away from carbon as a resource, and instead introducing hydrogen-based plants. “But we have to ask ourselves: Is there enough hydrogen available?” Also, energy is a huge issue, when relying on hydrogen. “If we would make all steel in Europe out of hydrogen, we would need the amount of energy being used in the whole of Germany at present.”

“On the other hand there is also the perspective of the availability of the technology”, says Steens. According to him, the technology is still 25 to 40 years away from being able to replace the current technology.

“This is why we clearly say that we want to make Tata Steel carbon neutral from 2050”, says Steens. “But we do not see a linear technology that will replace the current.” Instead Tata Steel’s goal is to combine existing technologies, and to permanently invest into new options. “This will only work if you have the right enablers at place.”

For instance, Tata Steel plans a partnership with the chemical company Nouryon, which will take the gases from the blast furnace and make them use for chemical production. This process will allow to reduce the CO2 finally emitted to a minimum. Also the remaining CO2 can be put in a storage platform planned by the Dutch government.

Another important pillar of Tata Steel’s sustainability strategy, can be found directly at the Tata Steel plant in Dutch IJmuiden. Since 2011, the HIsarna test plant is operating, bundling smelting process in a cyclone oven, and having the potential to reduce the CO2 emitted by up to 80 %. Visitors can literally feel: Here the future of sustainable steel making has already started.

Photo: Tata Steel in Europe