Abu Dhabi Future Energy Company PJSC – Masdar, the UAE's leading clean energy company, and EMSTEEL, the nation's largest publicly listed steel and building materials firm, have successfully concluded a pilot project showcasing the use of green hydrogen in producing green steel. The Abu Dhabi-based initiative, a first in the Middle East and North African region, employs green hydrogen to extract iron from iron ore, a critical process in steel production. The pilot is now fully operational and has successfully initiated the production of green steel.
The renewable hydrogen generated by the project has been certified by Avance Labs, the accredited hydrogen code manager by the International Tracking Standard Foundation, in line with the newly introduced ISO 19870 methodology for hydrogen. Bureau Veritas, acting as the third-party assurance provider, validated the certification data. The increasing global demand for green steel offers substantial growth opportunities for the UAE, which aims to become a significant hub for green steel production.
The UAE Ministry of Energy and Infrastructure launched the National Green Certificates Program in July 2024 to promote 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 expedite the energy transition.
Masdar CEO, Mohamed Jameel Al Ramahi, stated, "This project exemplifies world-class innovation through our partnership with EMSTEEL to produce green steel using green hydrogen. Decarbonizing hard-to-abate industries is crucial for achieving the goals of the historic UAE Consensus agreed at COP28. Green hydrogen is a vital component in advancing national and global decarbonization efforts, and we are proud to lead this endeavor."
Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, added, "We are dedicated to driving decarbonization in the sector, supporting the UAE's Net Zero by 2050 Strategic Initiative. Our efforts have been successful, with our clean energy usage exceeding 80% in 2023. EMSTEEL is also the first steelmaker globally to capture part of its CO2 emissions, operating with 45% less carbon intensity than the global average. Our partnership with Masdar will be instrumental in continuing our efforts to decarbonize this challenging sector and its downstream supply chain."
The pilot project aligns with Abu Dhabi's Low Carbon Hydrogen Policy, promoting low-carbon hydrogen as a future clean energy source. This policy is a significant step towards ensuring economic growth, sustainability, and energy security, and a strategic move towards a sustainable future. It complements the UAE National Hydrogen Strategy, aiming to establish the UAE as a leading global producer of low-carbon hydrogen by 2031.
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