Saeed Al Ghafri, CEO of Emirates Steel, a subsidiary of Emsteel Group, revealed a new project to produce low-carbon steel in Abu Dhabi, in cooperation with Japanese partners to meet the growing global demand for environmentally friendly products.
Al Ghafri confirmed on the sidelines of the “Middle East Iron and Steel Conference 2024” held in Dubai during the period from November 18 to 20, that the project is still in the feasibility study stages with partners, and therefore commercial production will not be before 2027.
He pointed out that the project embodies the company’s strategic expansion locally and globally, with its commitment to developing innovative technologies that help reduce the carbon footprint of its products.
Al Ghafri spoke about the project to produce “green steel” using hydrogen as clean energy, noting that it is still in its experimental stages, and work is underway to improve technical aspects and reduce costs.
He added: We are focusing, in partnership with Masdar, on studying the feasibility and expanding the project in the future to make it accessible to everyone. He stressed that Emirates Steel seeks to keep pace with the future by focusing on innovation and sustainability, going beyond the idea of increasing production, which currently stands at about 3.5 million tons of steel and iron.
He pointed out that the focus in the next phase will be on innovative projects with sustainable dimensions, noting that sustainability and innovation require huge investments at the beginning, whether to develop new technologies such as “green iron” or to expand global partnerships and produce low-carbon iron.
He explained that the cost of new innovations is high at the beginning, but decreases with time and expansion in production, making these products accessible to everyone.
Al Ghafri added that the support of governments and financial institutions is of utmost importance, especially in the early stages of innovation where the cost of technologies is high, and as the project progresses, financial partnerships demonstrate their ability to achieve a strong return on investment.
He touched on the carbon capture project launched by Emirates Steel in 2017 and explained that the company succeeded in capturing about 800,000 tons of carbon dioxide annually, which is used in injecting oil wells.
He considered this project an example of the company’s ability to employ innovation to achieve global sustainability goals, noting that international visitors flock to Abu Dhabi to see this pioneering experience. He stressed that “Emirates Steel” seeks not only to meet local demand, but also to strengthen its position in global markets through sustainable strategies and strong international partnerships.
