Abu Dhabi: Abu Dhabi Future Energy Company (Masdar), one of the world’s leading renewable energy companies, has joined forces with Emirates Steel Arkan to develop an innovative green hydrogen project to decarbonize the hard-to-abate steel sector in the UAE.
This pioneering project marks the first-of-its-kind in the Middle East and North African region. The initiative is located in the Emirates Steel Arkan production facilities in the Industrial City of Abu Dhabi.
The project, expected to be commissioned in early 2024, will demonstrate the use of green hydrogen, instead of natural gas, to extract iron from iron ore, a key step in steelmaking.
The global demand for green steel presents huge growth potential for the UAE’s steel industry as the country aspires to be among the frontrunners to decarbonize the global steel value chain. The project shows how clean energy and heavy industry partners in the UAE are taking urgent action to accelerate decarbonization. Additionally, it is a major step towards the UAE’s ambition to become one of the world’s largest hydrogen producers by 2031.
Steel manufacturing contributes between 7 and 8 percent of worldwide carbon emissions and companies are working harder to decarbonize their operations.
Mr. Mohamed Jameel Al Ramahi, CEO of Masdar, stated that, “Masdar is very pleased to be partnering with Emirates Steel Arkan on this innovative project to decarbonize 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.”
Mr. Al Ramahi further added that, “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.”
As the UN climate change conference COP28 is scheduled to start in the UAE at the end of this month, innovative projects that halt emissions without stifling progress will be a focus of international attention.
Eng. Saeed Ghumran Al Remeithi, Group CEO of Emirates Steel Arkan, pointed out that, “We strongly believe in the power of collaboration to achieve our ambitious decarbonization roadmap and are delighted to partner with Masdar to realize 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 realize 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,” Mr. Al Remeithi added.