Abu Dhabi Future Energy Company PJSC – Masdar, a leading clean energy company in the UAE, and EMSTEEL, the UAE’s largest publicly listed steel and building materials firm, have announced the successful completion of a pilot project showcasing the use of green hydrogen in the production of green steel.
According to the press release, This pioneering pilot project, based in Abu Dhabi, is the first of its kind in the Middle East and North Africa. It utilizes green hydrogen to extract iron from iron ore, a crucial step in steelmaking. The project is now fully operational and has successfully begun producing green steel.
The renewable hydrogen generated by the project has received certification from Avance Labs, the hydrogen code manager accredited by the International Tracking Standard Foundation, following the recently released ISO 19870 methodology for hydrogen. Bureau Veritas served as the third-party assurance provider to validate the certification data.
Steel production is a vital industry in the UAE, but it is also carbon-intensive and contributes between seven and eight percent of global carbon emissions. Therefore, decarbonizing this sector is critical for achieving a net-zero future.
The growing global demand for green steel presents significant growth opportunities for the UAE, which aims to become a key hub for green steel production. The UAE Ministry of Energy and Infrastructure’s National Green Certificates Program, launched in July 2024, promotes the use of sustainable building materials, including steel.
The collaboration between Masdar and EMSTEEL highlights the potential of green hydrogen to decarbonize the global steel value chain, showcasing how clean energy and heavy industry partners in the UAE are working together to accelerate the energy transition.
Masdar CEO Mohamed Jameel Al Ramahi stated, “This project exemplifies world-class innovation stemming from our partnership with EMSTEEL to produce green steel using green hydrogen. Decarbonizing hard-to-abate industries is essential for achieving the objectives outlined in the historic UAE Consensus at COP28. Green hydrogen is crucial for advancing national and global decarbonization efforts, and we are proud to lead in this initiative.”
Eng. Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, remarked, “We are dedicated to driving decarbonization in our sector, supporting the UAE’s Net Zero by 2050 Strategic Initiative. Our efforts have been successful, with our current use of clean energy sources exceeding 80% in 2023. EMSTEEL is also the first steelmaker globally to capture part of its CO2 emissions, allowing us to operate with 45% lower carbon intensity than the global average. Our partnership with Masdar will be instrumental in advancing our decarbonization efforts in this challenging sector and the downstream supply chain.”
The pilot project aligns with Abu Dhabi’s Low Carbon Hydrogen Policy, which promotes low-carbon hydrogen as a future clean energy source. This initiative marks a significant step towards ensuring economic growth, sustainability, and energy security, as well as contributing to a sustainable future. The policy complements the UAE National Hydrogen Strategy, which aims to position the UAE as a leading global producer of low-carbon hydrogen by 2031.
Since its inception in 2006, Masdar has been a key player in the UAE’s vision to become a global leader in sustainability and climate action. The company has developed and partnered on projects in over 40 countries, with a goal to expand its renewable energy portfolio capacity to 100 GW by 2030. It also aims to achieve a target of 1 million tonnes per annum of green hydrogen or equivalent derivatives in the UAE and globally within a decade.
Headquartered in Abu Dhabi, EMSTEEL has over 25 years of experience and is committed to creating products, services, and solutions that contribute to a better world, while also driving global sustainability through a low-carbon supply chain in collaboration with partners across the ecosystem.
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