Abu Dhabi Future Energy Company (Masdar), a global leader in renewable energy, announced today a groundbreaking partnership with Emirates Steel Arkan, one of the largest publicly listed companies in the iron and steel, building materials, and construction sector in the region. This collaboration aims to develop a pioneering project utilising green hydrogen to reduce carbon emissions in the UAE's energy-intensive steel industry.
Marking the first of its kind in the Middle East and North Africa region, this innovative project is currently under construction within the facilities of Emirates Steel Arkan in Abu Dhabi's industrial city. Equipped with electrolyzers, the project will produce green iron, a highly sought-after product by global steel companies striving to achieve net-zero emission targets.
Scheduled to commence operations in early 2024, the facility will replace natural gas with green hydrogen for iron ore reduction, a critical step in the iron production process. This transition will not only contribute to emission reduction but also enhance the UAE's steel sector's competitiveness in the global market.
The steel industry accounts for approximately 7 to 8 percent of global carbon emissions, making its decarbonisation a crucial step towards achieving climate neutrality. This project aligns with the UAE's National Hydrogen Strategy, positioning the country as a leading producer of green hydrogen by 2031.
The upcoming Conference of the Parties (COP28), to be held in the UAE at the end of this month, will focus on the significance of innovative projects that contribute to emission reduction while accelerating progress and development.
Commenting on the agreement, Mohamed Jameel Al Ramahi, CEO of Masdar, stated, "We are proud to collaborate with Emirates Steel Arkan on this groundbreaking project aimed at decarbonising this vital sector. Steel production plays a pivotal role in economic development and employment creation. This project presents an immense potential for emission reduction while enhancing commercial returns."
He added, "For over 17 years, Masdar has maintained its global leadership in the renewable energy sector. We will continue to harness innovation and forge partnerships to build a more sustainable future. The upcoming COP28 conference in the UAE serves as a testament to the country's leading global position in climate-related fields."
Saeed Ghumran Al Remeithi, CEO of Emirates Steel Arkan, expressed his enthusiasm for the partnership, stating, "We recognise the importance of partnerships in achieving our carbon removal aspirations. We are delighted to collaborate with Masdar, a leading company with a proven track record in developing and implementing sustainable energy projects in the UAE and globally. As the first company in the iron and steel industry in the Middle East and North Africa to adopt green hydrogen solutions for sustainable iron production, this project represents a significant step towards our commitment to achieving the company's sustainability goals."
Emirates Steel Arkan is committed to reducing its carbon emissions and achieving climate neutrality by 2050. The company has made significant progress in reducing its carbon emission intensity and plans to reduce emissions by 40% by 2030. Masdar is a company that is dedicated to advancing carbon removal efforts and has a global presence with projects spanning over 40 countries. The company will have a prominent presence at the COP28 conference, where it will showcase its innovative projects, including its partnership with Emirates Steel Arkan.