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Masdar and Emirates Steel Arkan to develop green hydrogen project

Published by , Editorial Assistant
Energy Global,

Abu Dhabi Future Energy Company PJSC, Masdar, has partnered with Emirates Steel Arkan, one of the largest publicly traded steel and building materials manufacturers in the region, to develop an innovative green hydrogen project to decarbonise the hard-to-abate steel sector in the UAE.

Masdar and Emirates Steel Arkan to develop green hydrogen project

The pilot project is the first-of-its-kind in the Middle East and North African region. Located in the Emirates Steel Arkan production facilities at the Industrial City of Abu Dhabi, the project is currently in the installation phase. Electrolysers have already been delivered to the site to help produce ‘green steel’, a premium product sought after by global manufacturers eager to meet their net-zero goals. Expected to be commissioned in early 2024, the project will demonstrate the use of green hydrogen – instead of natural gas – to extract iron from iron ore, a key step in steelmaking.

The rising 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 decarbonise the global steel value chain. The project shows how clean energy and heavy industry partners in the UAE are taking urgent action to accelerate decarbonisation. It is also a significant step in enabling the UAE’s strategy of making the country one of the world’s largest hydrogen producers by 2031. Steel manufacturing contributes between 7% and 8% of worldwide carbon emissions. Decarbonising this industry holds the key to propelling the world towards a net-zero future. With the UN climate change conference COP28 set to begin in the UAE at the end of this month, innovative projects that halt emissions without stifling progress will be a focus of international attention.

“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,” said Mohamed Jameel Al Ramahi, CEO of Masdar. “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.”

“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,” added Saeed Ghumran Al Remeithi, Group CEO of Emirates Steel Arkan. “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.”

Emirates Steel Arkan’s carbon intensity is independently certified to be less than half of the global steel industry average, and in 2022, it made significant strides in energy efficiency, achieving a double-digit reduction in energy intensity and a remarkable reduction in emissions and emissions intensity. This was achieved by using 80% of clean electricity, carbon capture, and scrap metal utilisation. Emirates Steel Arkan is committed to reducing 40% in carbon emissions by 2030, with primary aim to achieve net-zero by 2050.



For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global's Autumn 2023 issue

The Autumn 2023 issue of Energy Global hosts an array of technical articles focusing on green hydrogen, wind installation technology, blade monitoring solutions, and more. This issue also features a regional report looking at some key renewables projects in Australia..

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