Masdar and EMSTEEL Unveil MENA’s First Green Steel Project

Abu Dhabi Future Energy Company PJSC – Masdar, a leader in clean energy, has partnered with EMSTEEL, the largest publicly listed steel and building materials company in the UAE, to successfully complete a pioneering pilot project that utilizes green hydrogen for the production of green steel. This groundbreaking initiative marks the first of its kind in the Middle East and North African region.

The Abu Dhabi-based pilot project employs green hydrogen to extract iron from iron ore, a crucial step in the steelmaking process. Now fully operational, it has commenced the production of green steel, setting a new benchmark for sustainable practices in the steel industry.

Renewable hydrogen produced by the project has received certification from Avance Labs, an accredited hydrogen code manager under the International Tracking Standard Foundation. This certification adheres to the newly released ISO 19870 methodology for hydrogen, with validation provided by Bureau Veritas as the third-party assurance provider.

Steel production is vital to the UAE’s economy but is also a significant contributor to global carbon emissions, accounting for approximately 7-8% worldwide. Thus, decarbonizing the steel sector is essential for moving towards a net-zero future.

The increasing global demand for green steel offers substantial growth opportunities for the UAE as it aims to become a prominent hub for green steel production. The National Green Certificates Program, launched by the UAE Ministry of Energy and Infrastructure in July 2024, promotes the use of sustainable building materials, including green steel.

The collaboration between Masdar and EMSTEEL highlights the potential of green hydrogen to decarbonize the global steel value chain and showcases how clean energy and heavy industry partners in the UAE are taking decisive action to accelerate the energy transition.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, 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 crucial to achieving the goals set forth in the historic UAE Consensus agreed at COP28. Green hydrogen is essential for advancing national and global decarbonization efforts, and we are proud to lead this initiative.”

Eng. Saeed Ghumran Al Remeithi, Group Chief Executive Officer of EMSTEEL, added, “We are committed to advancing decarbonization in our sector, supporting the UAE’s Net Zero by 2050 Strategic Initiative. Our clean energy utilization has exceeded 80% in 2023. EMSTEEL is also the first steelmaker globally to capture part of its CO2 emissions, allowing us to operate with 45% less carbon intensity than the global average. Our partnership with Masdar is pivotal in our ongoing efforts to decarbonize this challenging sector and its supply chain.”

This pilot project aligns with Abu Dhabi’s Low Carbon Hydrogen Policy, which aims to establish low-carbon hydrogen as a clean energy source, marking a significant milestone for economic growth, sustainability, and energy security. It complements the UAE National Hydrogen Strategy, which seeks to position the UAE as a leading global producer of low-carbon hydrogen by 2031.

Since its inception in 2006, Masdar has played a crucial role in realizing the UAE’s vision as a global leader in sustainability and climate action, having developed projects in over 40 countries. The company aims to expand its renewable energy portfolio capacity to 100 GW by 2030, with a target of producing 1 million tonnes per annum of green hydrogen and its derivatives within a decade.

EMSTEEL, headquartered in Abu Dhabi, boasts a heritage of over 25 years and is dedicated to creating products and solutions that contribute to a better world while driving global sustainability through a low-carbon supply chain in collaboration with partners across the ecosystem.