New Delhi, Aug 30 (PTI) Tata Steel on Tuesday said it will invest more than 65 million euros for hydrogen-based steel manufacturing in the Netherlands.

Hydrogen has the potential to decarbonise steel manufacturing.

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Tata Steel has inked pacts with three firms -- McDermott, Danieli and Hatch -- for the further technical preparations for hydrogen-based steel manufacturing in the Dutch city of Ijmuiden.

All three companies have their own specific proficiency that is needed together to assist Tata Steel in hydrogen-based steel manufacturing.

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"The cost for this first development step is in excess of 65 million euros and will result in an engineering package that forms the basis for a final permitting and project planning," the company said in a statement.

The overall project is led by the Tata Steel internal project and sustainability team, with close support from the main delivery partners.

McDermott is responsible for the construction input and support of the technical project management.

Danieli will oversee the engineering design of the plant and technology that delivers the Direct Reduced Iron (DRI), the first step in the iron-making process.

Hatch is the technology licensor of the electric furnaces that melt the DRI and help reduce the oxygen content further, thereby improving the final steel quality.

The REF and DRI plants are closely combined to form an integrated production system.

"We recently signed agreements about our future with two ministries and the province of North Holland. In doing so, we have committed to being CO2 neutral before 2045 and emit between 35 to 40 per cent less CO2 before 2030. This will primarily be achieved via the hydrogen route where the blast furnaces are replaced with modern, clean steel-making technology that uses hydrogen or gas instead of coal," Tata Steel Nederland CEO Hans van den Berg said.

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