Emirates Steel unveils low-carbon iron project in collaboration with Japanese partners

Saeed Khalfan Al Ghafri, CEO of Emirates Steel, a subsidiary of the Emsteel Group, announced a new project to produce low-carbon iron in Abu Dhabi in collaboration with Japanese partners to meet the growing global demand for eco-friendly products.

In statements to the Emirates News Agency (WAM) on the sidelines of the Fastmarkets Middle East Iron & Steel 2024, held in Dubai from 18th to 20th November, Al Ghafri said that the project is currently in the feasibility study phase with partners, and commercial production is not expected before 2027.

He noted that the project represents a strategic expansion for the company both locally and globally, with a commitment to developing innovative technologies that help reduce the carbon footprint of its products.

Al Ghafri also discussed the Green Iron project using hydrogen as a clean energy source, noting that it is still in experimental stages, with ongoing efforts to improve technical aspects and reduce costs.

He added, “In partnership with Masdar, we are focusing on a feasibility study and future expansion to make this project accessible to everyone,” emphasising that Emirates Steel aims to embrace the future by prioritising innovation and sustainability, rather than merely increasing its current output of approximately 3.5 million tonnes of steel and iron.

He highlighted that the focus in the upcoming phase will be on innovative projects with sustainable dimensions, pointing out that sustainability and innovation require significant initial investments, whether in developing new technologies like green iron or in expanding global partnerships and producing low-carbon iron.

Al Ghafri explained that the cost of new innovations is initially high but decreases over time with expanded production, making these products more accessible.

He added that government and financial institution support is crucial, especially during the early stages of innovation when technology costs are high. As projects advance, financial partnerships demonstrate their ability to deliver strong investment returns.

He also referenced the carbon capture steel project launched by Emirates Steel in 2017, noting that the company successfully captures around 800,000 tonnes annually of carbon dioxide, which is utilised for oil well injection.

He described this project as a testament to the company’s ability to leverage innovation to achieve global sustainability goals, noting that international visitors come to Abu Dhabi to witness this pioneering experience.

Al Ghafri affirmed that Emirates Steel is not only focused on meeting local demand but also aims to enhance its position in global markets through sustainable strategies and robust international partnerships.

WAM