Masdar, one of the world’s leading renewable energy companies, has partnered with Emirates Steel Arkan, one of the largest publicly traded steel and building materials manufacturers in the region, to develop an innovative green H₂ project to decarbonize the hard-to-abate steel sector in the UAE.

The pilot project is the first-of-its-kind in the Middle East and North African region. Located in the Emirates Steel Arkan production facilities at the Industrial City of Abu Dhabi, the project is currently in the installation phase. Electrolyzers have already been delivered to the site to help produce green steel, a premium product sought after by global manufacturers eager to meet their net-zero goals. Expected to be commissioned in early 2024, the project will demonstrate the use of green H₂—instead of natural gas—to extract iron from iron ore, a key step in steelmaking.

The rising global demand for green steel, presents huge growth potential for the UAE’s steel industry as the country aspires to be among the frontrunners to decarbonize the global steel value chain. The project shows how clean energy and heavy industry partners in the UAE are taking urgent action to accelerate decarbonization. It is also a significant step in enabling the UAE’s strategy of making the country one of the world’s largest H₂ producers by 2031.

Steel manufacturing contributes between 7% and 8% of worldwide carbon emissions. Decarbonizing this industry holds the key to propelling the world towards a net-zero future. With the UN climate change conference COP28 set to begin in the UAE at the end of this month, innovative projects that halt emissions without stifling progress will be a focus of international attention.

Active in over 40 countries and with a total electricity generation capacity of over 20 GW, Masdar is targeting 100 GW by 2030. Masdar will have a strong presence during COP28 in Expo City, Dubai, where it plans to showcase innovative projects including this pioneering partnership with Emirates Steel Arkan.

Mohamed Jameel Al Ramahi, CEO of Masdar said, “Masdar is very pleased to be partnering with Emirates Steel Arkan on this innovative project to decarbonize this vital sector. Steel is an essential commodity driving economic growth and creating jobs and this project presents huge potential for reducing emissions while increasing trade. Masdar has been pioneering renewable energy projects around the world for more than 17 years. The UAE will once again demonstrate its climate leadership by hosting COP28 in a few days’ time. As the country’s clean energy powerhouse, Masdar will continue to harness the power of innovation and partnership to create a cleaner, greener tomorrow.”

“We strongly believe in the power of collaboration to achieve our ambitious decarbonization roadmap and are delighted to partner with Masdar to realize this goal, known for its successful track record in developing and implementing sustainable energy solutions in the UAE and globally. As the first steel company in the MENA region, and among the pioneers worldwide to adopt green H₂ for sustainable steel production, this project represents a major milestone in our commitment to realize our company’s sustainability objectives,” said Eng. Saeed Ghumran Al Remeithi, Group CEO of Emirates Steel Arkan.

“By embracing cutting-edge technologies and fostering strategic collaborations, we are spearheading the industry's shift towards a more sustainable future, in harmony with the UAE's strategic commitment to achieving net zero by 2050.”