Masdar + Emirates Steel Arkan develop region’s first green steel pilot project: Renewables giant Masdar has partnered with Emirates Steel Arkan to develop a pilot green hydrogen plant to decarbonize the UAE’s steel sector, according to a statement released last week. The pilot project could potentially cut carbon emissions in the steel-making process by 95%, the statement notes. The investment ticket for the project was not disclosed.

What we know so far: Expected to be commissioned in 2024, the pilot project will use green hydrogen instead of natural gas to extract iron from iron ore, according to the statement. Electrolyzers have already been delivered to the project site, located in the Emirates Steel Arkan production facilities in the Industrial City of Abu Dhabi.

Why is this important? Steelmaking was responsible for some 7-9% of the world’s carbon emissions in 2020. This is due to the use of high-carbon coking coal as a fuel source to heat iron ore pellets at very high temperatures and liquify the pure iron — a process known as coal-fuelled blast furnace and basic oxygen furnace (BF-BOF). As of 2019, some 71% of global crude steel production used BF-BOF, according to data cited by the IEA.

Big goals for green steel: The MENA region is well-positioned to become a global hub for green steel and iron production given its large renewables potential needed to produce green hydrogen, as well as an established iron market. Emirates Steel Arkan partnered with JFE Steel and Itochu Corporation to produce low-emission iron material for international export last year, and Oman’s Jindal Shadeed Iron and Steel invested USD 3 bn in a green steel plant with a production capacity of 5 mn tons in December.

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