Tata Steel's Dutch arm plans to supply Ford plants in Europe with "green" steel after 2030, under a preliminary agreement reached by the two companies, news agency Reuters has reported.

Tata intends to begin producing green steel, or steel made without the use of fossil fuels, at its plant in Ijmuiden, the Netherlands, in 2030.

Hans van den Berg, CEO of Tata Steel Nederland, in an interview said that Ford wants a significant amount of green steel, and the steel giant will take steps to ensure its deliverance.  

According to den Berg, the Memorandum of Understanding signed by Tata and Ford of Europe does not obligate Ford to purchase a specific amount of steel at a specific price.

Separately, Ford announced that it had signed supply agreements with Tata, ThyssenKrupp, and Salzgitter to supply "low carbon" steel for use in the production of the new electric crossover model that it plans to begin producing in Cologne next year.

In a statement, Ford said the agreements would help it meet a target of zero emissions at its European facilities, logistics, and suppliers by 2035.
Ford of Europe's purchasing director Sue Slaughter stated that improvements in the company's supply chain remain critical, and that the use of carbon neutral steel will take a significant step toward lowering the CO2 footprint of our vehicles, the report added.

Meanwhile, the Ford's Cologne facilty is being repurposed for the electric crossover with high levels of efficiency in mind. According to a Ford release, in the paint shop alone, extensive conversion work is being carried out on 45 construction sites. 

New technologies will ensure improved efficiency in the future, save around 2,000 tons of CO₂ per year and reduce energy consumption by around 2,600 megawatt hours, says Ford.

Construction work for the two new production halls that are being built for the Cologne Electrification Center on the factory premises is almost complete and in the body shop, the current Fiesta production is being redesigned in order to generate free space.