In a groundbreaking collaboration, Abu Dhabi Future Energy Company PJSC, known as Masdar, a frontrunner in renewable energy, has joined forces with Emirates Steel Arkan, a prominent publicly traded steel and building materials manufacturer in the region. Their joint venture aims to pioneer an innovative green hydrogen project, marking a transformative step toward decarbonizing the challenging steel sector in the UAE.
This pioneering initiative marks the first-of-its-kind project in the Middle East and North African region. Situated within the Emirates Steel Arkan production facilities in the Industrial City of Abu Dhabi, the project is currently in its installation phase. Electrolyzers, essential for the production of ‘green steel’—a premium product highly sought after by global manufacturers striving to achieve net-zero objectives—have already been delivered to the site.
Expected to commence operations in early 2024, the project stands as a testament to utilizing green hydrogen, replacing natural gas in the extraction of iron from iron ore, a pivotal process in steelmaking.
The global demand for green steel offers substantial growth potential for the UAE’s steel industry, aligning with the nation’s aspirations to lead the charge in decarbonizing the global steel value chain. This project represents a pivotal alliance between clean energy and heavy industry stakeholders in the UAE, demonstrating proactive measures to expedite decarbonization efforts. Moreover, it signifies a crucial stride towards the UAE’s ambition to become one of the world’s foremost hydrogen producers by 2031.
Steel manufacturing presently contributes between 7 and 8 percent of global carbon emissions, positioning the decarbonization of this industry as a linchpin in steering the world towards a net-zero future. As the UN climate change conference, COP28, approaches in the UAE, projects like these, capable of curbing emissions while fostering progress, will seize international attention.
Engaged in over 40 countries with a robust electricity generation capacity exceeding 20GW, Masdar is steadfast in its aim to reach 100GW by 2030. During COP28 at Expo City, Dubai, Masdar plans to showcase innovative projects, spotlighting this pioneering partnership with Emirates Steel Arkan among its endeavors.
Mohamed Jameel Al Ramahi, CEO of Masdar, expressed enthusiasm about this collaborative venture, stating, “Masdar is very pleased to be partnering with Emirates Steel Arkan on this innovative project to decarbonize this vital sector.”
Similarly, Eng. Saeed Ghumran Al Remeithi, Group CEO of Emirates Steel Arkan, highlighted the significance of collaboration in achieving ambitious decarbonization goals. He emphasized the project’s importance in realizing sustainability objectives and steering the industry towards a more sustainable future in line with the UAE’s commitment to achieving Net Zero by 2050.
Emirates Steel Arkan’s commitment to sustainability is evident in its independently certified carbon intensity, which is less than half of the global steel industry average. The company has made significant strides in energy efficiency, reducing energy intensity and emissions by leveraging clean electricity, carbon capture, and scrap metal utilization. Their roadmap includes a 40% reduction in carbon emissions by 2030 with the ultimate aim of achieving Net-Zero by 2050.
Masdar’s dedication to decarbonizing hard-to-abate sectors aligns with its leadership in the ‘decarbonizing industry’ working group under the Sustainable Markets Initiative. Established in 2006, Masdar’s global footprint and investment commitment to renewable energy projects signify its pivotal role in driving global sustainability goals.
The joint venture between Masdar and Emirates Steel Arkan represents a significant leap towards a greener, more sustainable future for the UAE’s steel sector, poised to leave a lasting impact on global efforts to combat climate change.
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