Tata Steel Nederland will acquire Vattenfall’s power plants in the IJmond region

According to the agreement finalized today, ownership of the plants will transfer to TSN on 1 January 2026. While financial details were not disclosed, all Vattenfall employees working at the sites will move over to TSN.

Tata Steel Nederland CEO Hans van den Berg highlighted the long-standing role of the power plants in the company’s steel production, stating: “Vattenfall’s power plants, and those of its predecessors, have been naturally integrated into our steelmaking operations for almost a century. These plants are unique because they operate using waste gases from steel production. With the current contract ending in late 2025, the time has come to take ownership. This will allow us to manage the step-by-step transition from today’s production to a low-carbon, green steel operation. This transfer is an important and concrete step in our shift toward green steel.”

Alexander van Ofwegen, Senior Vice President and Head of Vattenfall’s Customers & Solutions and Heat business area, emphasized that the agreement offers positive outcomes for both parties: “At Vattenfall, we support Tata Steel’s goal of transitioning to more sustainable steel production. During this transition, the gas-fired plants in Velsen are still needed. Therefore, this agreement creates a win-win situation: Tata Steel gains greater control over its full production chain, and plant employees can continue working under similar conditions.”

Three-Unit Power Plant Complex to Transfer to TSN

The IJmond energy portfolio consists of three units:

• Units 24 and 25 in Velsen-Noord generate electricity primarily using waste gases from steel production, which is then used in TSN’s operations.

• The third unit, known as IJmond 01, operates within the combined heat and power (CHP) plant at Tata Steel’s IJmuiden site. It also runs on waste gases, producing both electricity and steam that feed directly into the steelmaking processes.

Together, the three units employ approximately 116 staff.

Approval Process Completed

The works councils of both Vattenfall and TSN have issued their advice on the transaction. Regulatory authorities, including the Netherlands Authority for Consumers and Markets (ACM), have approved the ownership transfer.

The formal handover of the plants will take place on 1 January 2026.