Abu Dhabi Future Energy Company PJSC (Masdar), a prominent global renewable energy firm, has joined forces with Emirates Steel Arkan to initiate an inventive green hydrogen project aimed at decarbonising the challenging-to-abate steel sector in the UAE.
This groundbreaking pilot project represents a first in the Middle East and North African region, situated at the production facilities of Emirates Steel Arkan in the Industrial City of Abu Dhabi. Currently in the installation phase, the project has received the delivery of electrolysers to facilitate the production of ‘green steel,’ a sought-after premium product by global manufacturers striving to meet their net-zero objectives. Set to be commissioned in early 2024, the initiative will showcase the use of green hydrogen, replacing natural gas, in the extraction of iron from iron ore—an essential step in the steelmaking process.
UAE’s Steel Industry Leverages Global Demand for Green Steel
As the global demand for green steel rises, the UAE’s steel industry stands to benefit significantly, aligning with the country’s ambition to be at the forefront of decarbonising the global steel value chain. The project exemplifies the collaborative efforts of clean energy and heavy industry partners in the UAE, reflecting their commitment to hastening decarbonisation. Moreover, it marks a significant stride in the UAE’s strategy to become one of the world’s leading hydrogen producers by 2031.
Given that steel manufacturing contributes 7 to 8 percent of global carbon emissions, decarbonising this sector becomes pivotal in steering the world towards a net-zero future. With the UN climate change conference COP28 commencing in the UAE later this month, projects that effectively mitigate emissions while fostering progress will garner international attention.
Masdar, operational in over 40 countries with a total electricity generation capacity exceeding 20GW, aims to reach 100GW by 2030. During COP28 in Expo City, Dubai, Masdar plans to showcase innovative projects, including this pioneering collaboration with Emirates Steel Arkan.
Masdar CEO, Mohamed Jameel Al Ramahi, Highlights Partnership
Mohamed Jameel Al Ramahi, CEO of Masdar, said, “Masdar is very pleased to be partnering with Emirates Steel Arkan on this innovative project to decarbonise this vital sector. Steel is an essential commodity driving economic growth and creating jobs and this project presents huge potential for reducing emissions while increasing trade. Masdar has been pioneering renewable energy projects around the world for more than 17 years. The UAE will once again demonstrate its climate leadership by hosting COP28 in a few days’ time. As the country’s clean energy powerhouse, Masdar will continue to harness the power of innovation and partnership to create a cleaner, greener tomorrow.”
Eng. Saeed Ghumran Al Remeithi, Group CEO of Emirates Steel Arkan, added, “We strongly believe in the power of collaboration to achieve our ambitious decarbonisation roadmap and are delighted to partner with Masdar to realise this goal, known for its successful track record in developing and implementing sustainable energy solutions in the UAE and globally. As the first steel company in the MENA region, and among the pioneers worldwide to adopt green hydrogen for sustainable steel production, this project represents a major milestone in our commitment to realise our company’s sustainability objectives.”
By embracing cutting-edge technologies and fostering strategic collaborations, we are spearheading the industry’s shift towards a more sustainable future, in harmony with the UAE’s strategic commitment to achieving Net Zero by 2050, according to WAM.
