Masdar + Emirates Steel Arkan to “greenify” the steel sector: Clean energy giant Masdar is set to collaborate with steel manufacturer Emirates Steel Arkan to develop a green hydrogen-based steel production facility, Masdar said in a statement.

About the project: The maiden project, which is set to be the first in the region, the project, currently in the installation phase, is situated in The Industrial City of Abu Dhabi. The project is expected to begin production by early 2024.

What makes this steel green? The plant will utilize green hydrogen, instead of natural gas, to extract iron from iron ore. Green hydrogen is produced from clean renewable sources of energy such as solar and wind power.

Decarbonizing the steel sector is becoming essential since the iron and steel industry is responsible for 7-9% of all direct fossil fuel emissions worldwide.

Emirates Steel Arkan is pushing to produce green steel: Emirates Steel Arkan inked a non-binding agreement last year with two Japanese companies to study establishing a low-carbon iron ore processing plant in Abu Dhabi. The company is the UAE’s largest steel and building materials manufacturer, with a total steel production capacity of 3.5 mn tons annually.

UAE to spearhead MENA’s transformation to a green steel-producing hub? The news of the new facility comes a week after US-based Institute for Energy Economics & Financial Analysis (IEEFA) published a report on how the region is qualified to become a hub for green steel and iron production. The report cites the ample solar energy resources in the region that can be used to produce green hydrogen to make green steel amidst rising demand.

Tags: