Contact
    • Previous Next
    A turning point Interview with Koen Overtoom

    Joint Letter of Intent

    The Joint Letter of Intent (JLoI) details the terms of the final Tailor-Made Agreement (TMA) which is intended to be signed in 2026. The primary aim of the JLoI is for the Parties to lay down the intention and reasonable effort obligation (inspanningsverplichting) to come to a TMA.

    The TMA in its turn is intended to include firm obligations (resultaatsverplichtingen) for TSN to:

    • materially reduce Scope 1 CO2-emissions and set a pathway to climate neutrality by 2045 (see the Green Steel chapter for further details); and

    • accelerate material reduction of various substances, as well as peak/tonal noise and odour (see the License to Operate chapter for further details).

    To achieve its environmental objectives, TSN expresses its intent to execute the projects that belong to Phase 1 of the Green Steel Project. This includes an annual CO2 reduction of at least 5.4 million tonnes by transitioning to natural gas, with further gains in CO2 possible by applying Carbon Capture and Storage (CCS) and replacing natural gas with biomethane and/or hydrogen.

    TSN will also take additional measures to improve local environmental performance and to address possible health risks for local residents. These measures include a reduction in dust and NOx emissions, as well as reductions in the emissions of substances of very high concern, alongside mitigation of key community concerns such as dust, noise and odour.

    To embed this focus in the organisation, it has also been agreed in the JLoI that TSN will further strengthen its culture and operation in relation to compliance. In response, and as part of the fundamental transformation, TSN is undertaking to increase transparency and strengthen its performance culture. 

    In the JLoI, TSL reaffirms its intention to continue to support TSN in its ambition to be among Europe’s most competitive and leading steel producers, as well as an employer of choice. TSL also confirms its willingness and ability to cooperate reasonably with TSN and fully encourages TSN to meet its obligations under the JLoI related to the transition. 

    In return, the State has expressed its intention to use reasonable efforts to provide a one-off subsidy with a maximum of €2,000 million subject to approval from the European Commission and parliament.

    The JLoI contains certain conditions for the benefit of TSN that need to be fulfilled to come to the TMA. In short, these are that national policy changes related to the CO₂ levy, network tariffs, and steel‑slag regulation should not result in significant additional costs or other materially adverse impacts on TSN’s business, projects, operations, or financial position.

    The JLoI also contains safeguards for the Dutch State in relation to the period leading up to the Tailor‑Made Agreement, including parliamentary support, European Commission approval of envisaged State aid, continued policy compatibility and satisfactory progress by TSN on environmental and health‑related governance and compliance. These safeguards are reflected through termination rights, consistent with the non‑binding character of the JLoI prior to final agreement.

    Following the Dutch elections in October 2025, a new government coalition was formed, which published its coalition agreement in January 2026. The agreement includes proposals aimed at strengthening industrial competitiveness, such as lowering electricity costs for industry and abolishing the Dutch national CO₂ levy.

    Following a plenary debate in the Dutch Parliament on 7 April 2026 regarding the Joint Letter of Intent with Tata Steel, the subsequent voting outcome was interpreted by TSN as a constructive signal to continue work towards a definitive agreement, subject to the conditions and safeguards included in the JLoI. It is expected to become clear later this year whether the parties to the JLoI are able to reach agreement on a Tailor-Made Agreement. If no agreement is reached, TSN will have to reassess its options.

    After the signing of the JLoI, the commitments set out in the JLoI were integrated into TSN’s broader SCALE transformation programme (see Strategy). The JLoI provides a clear deadline and set of conditions under which the larger transformation of TSN can proceed. This ensures complete alignment with the Green Steel Project and the company’s long-term strategic transformation. Delivering on these commitments is of the highest priority to TSN.

    “The JLoI provides a clear deadline and set of conditions under which the larger transformation of TSN can proceed. This ensures complete alignment with the Green Steel Project.”