Today's Edition
SARA ALZAABI (ABU DHABI)
Abu Dhabi Future Energy Company PJSC - Masdar, the UAE's clean energy pioneer, and EMSTEEL, the largest listed steel business in the United Arab Emirates, have wrapped up a ground-breaking pilot project which utilises green hydrogen to produce green steel.
The project, which is the first of its kind in the MENA region, employs green hydrogen to extract iron from iron ore, a crucial stage in the creation of steel, establishing the UAE as an emerging hub for the production of hydrogen and green steel.
Now fully operational, the project aims to cut CO₂ emissions in steelmaking by up to 95 percent, supporting the UAE's Net Zero by 2050 strategy, Abu Dhabi's Low Carbon Hydrogen Policy, and the UAE National Hydrogen Strategy's goal of global leadership in low-carbon hydrogen by 2031.
Masdar Chief Executive Officer, Mohamed Jameel Al Ramahi, said, "This project demonstrates world-class innovation as a result of our partnership with EMSTEEL to produce green steel utilising green hydrogen. Decarbonisation of hard-to-abate industries is vital to the global undertaking to achieve the objectives of the historic UAE Consensus agreed at COP28. Green hydrogen is an essential element in advancing national and global decarbonisation efforts and we are proud to be at the forefront of that endeavour."
Eng. Saeed Ghumran Al Remeithi, Group Chief Executive Officer of EMSTEEL, commented: "We are committed to propelling decarbonisation efforts in the sector, in support of the UAE's Net Zero by 2050 Strategic Initiative. Our efforts to date have been fruitful, with our current utilisation of clean energy sources rising above 80% in 2023. EMSTEEL is also the first steelmaker in the world to capture part of its CO2 emissions, enabling us to operate with 45% less carbon intensity than the global average. Our partnership with Masdar will play a key role in continuing to build on our efforts to decarbonise this hard-to-abate sector and the downstream supply chain."
On the sidelines of the event, Saeed Al Ghafri, CEO of Emirates Steel, part of the EMSTEEL Group, spoke with Aletihad about the groundbreaking impact of their recent green hydrogen project.
"Today, when you look at our decarbonisation plan, we are among only five global steel producers recognised by the World Economic Forum. This really positions us as a significant player in the market," he said. As soon as the steel plant's technology proves to be successful, commercial success will come easily, Al Ghafri continued, adding that their top focus right now is ensuring the pilot platform's success.
Dr. Faye Al Hersh, Head of Green Hydrogen Business Development at Masdar, outlined the project's extensive environmental implications.
"As we look towards the UAE's net-zero goals, targeting hard-to-abate sectors is crucial to decarbonisation. This project is our first step, one we hope to amplify to meet our ambitious targets," she said.
"Using green hydrogen in this sector has the potential to reduce emissions by up to 95 percent," Dr. Al Hersh said.
"The hydrogen acts as a reducing agent, extracting iron from iron ore, a crucial step in steel production. Increasing the role of green hydrogen in this process is a powerful way to decarbonise the industry," she added.
Dr. Al Hersh also highlighted Masdar's green hydrogen project, which intends to generate one million tonnes of hydrogen per year for 10 years.
The project is in adherence to Abu Dhabi's low-carbon hydrogen policy and MENA-region strategy.
Employing electrolysis powered by solar energy, EMSTEEL can produce green steel. "Adopting this technology early on was critical," Al Ghafri said in response to the challenges they faced.
"Like any innovation, challenges arise, but our experience has given us an advantage. When we look at carbon taxes in places like Europe, the financial benefits of reduced emissions are clear. These challenges will become easier to manage, and, over time, green hydrogen will become part of the standard process."
