MAYS IBRAHIM (ABU DHABI)
With a proactive approach to innovation, collaboration, and investment in green technologies, Emirates Steel, part of the EMSTEEL Group, is eyeing a greener future for the construction sector in the UAE and beyond.
In an interview with Aletihad at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2024, Michael Rion, the Chief Commercial Officer of Emirates Steel, highlighted the company's role in driving decarbonisation efforts in the steel industry.
Setting the Standard for Carbon Intensity Emirates Steel has established itself as a regional frontrunner in carbon intensity reduction, achieving an average Scope 1 and 2 carbon intensity of just 0.7 tonnes of CO2 per tonne of steel produced. This figure is the result of dedicated efforts spanning several years, according to Rion.
Since 2016, the company has been implementing a Carbon Capture, Utilization, and Storage (CCUS) system capable of capturing up to 800,000 tonnes of CO2 annually - equivalent to removing 200,000 cars from the roads, Rion explained.
Transitioning to Clean Energy Another key aspect of the company's commitment to decarbonisation involves sourcing clean energy. Currently, 84% of Emirates Steel's electricity is generated from renewable sources, with plans to reach 100% by 2030, said Rion.
Last week, the company commissioned a pilot project to start producing on-site hydrogen, in cooperation with Masdar. The goal is to achieve carbon neutrality by 2050, in line with the UAE's national objectives, Rion added.
"Our mission is to offer completely green steel, significantly lowering carbon intensity and contributing to a sustainable world."
The steel industry contributes nearly 8% of global CO2 emissions, according to Rion.
He noted that the transition to 100% clean energy will be a gradual process requiring substantial investment and regulatory support.
Leveraging Technology
Despite the hurdles, Rion is optimistic about the growing demand for green steel. "We are already engaging with local partners to help 'greenify' the construction industry in the UAE," he said.
The company has also launched a new high-tensile strength rebar, known as ES600, which promises to reduce steel consumption by up to 25% in typical construction projects, translating to lower carbon emissions.
"Our innovation allows for the same structural strength using less material," Rion explained.
Artificial intelligence (AI) is also poised to play a transformative role in the steel industry. Emirates Steel plans to launch a customer relationship management system by January 2025, which will use AI to transform customer interactions, allowing clients to track their orders in real time and better manage deliveries, Rion said.