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Abu Dhabi takes the lead in green steel transition

14 October 2025

 

Abu Dhabi’s latest move to position itself at the forefront of the global transition to low-carbon heavy industry is the launch of TrueGreen, a new sustainability identity by Emsteel Group that unifies the company’s decarbonisation efforts.

The initiative reflects more than a decade of investment in green technologies, partnerships and innovation designed to transform one of the world’s most carbon-intensive industries into a cornerstone of the UAE’s Net Zero 2050 agenda.

It also highlights Abu Dhabi’s growing status as a hub for sustainable steelmaking and hydrogen-enabled manufacturing – sectors that will play a defining role in the energy transition.

At the launch event in late September, Emsteel Group CEO Saeed Ghumran Al-Remeithi described TrueGreen as the result of years of prudent decision-making. “From day one, we chose the right technology setting a cleaner foundation for our industry,” he said.

“We became the first steel company in the world to capture carbon dioxide (CO2) emissions, and today our production process has 45% lower carbon intensity than the global average. TrueGreen is a declaration of our unwavering commitment to sustainable steel, built on decades of innovation and delivered as a transparent, verifiable advantage for our customers.”

Industrial plans

What began as Emirates Steel, a key pillar of Abu Dhabi’s industrial diversification strategy, has evolved into Emsteel Group, the region’s largest publicly listed steel and building materials company, following its merger with Arkan Building Materials in 2021. Over that time, the company has taken key steps to align with Abu Dhabi’s broader vision of an industrial base that is globally competitive, digitally advanced and environmentally responsible.

Al-Remeithi noted that sustainability has always been part of the company’s DNA. “This is not new for us,” he said. “Sustainability has been in our DNA from the beginning. Since 2019, we have reduced Scope 1 and 2 emissions by 23%. By 2030, we aim for a 40% reduction in greenhouse gas emissions in steel production and 30% in cement, and by 2050 our goal is net zero across the group.”

Those efforts have already delivered tangible results. Emsteel’s low-carbon rebar has been used by Aldar in constructing Abu Dhabi’s first net-zero-carbon mosque on Yas Island. The project demonstrates that there is a practical application for green materials in the emirate’s built environment and sets a precedent for the UAE’s wider decarbonisation targets that call for a 79% reduction in built-environment emissions by 2035.

Another important part of Abu Dhabi’s green steel ambitions came a year earlier, when Emsteel announced a green-hydrogen pilot project with UAE-based Abu Dhabi Future Energy Company (Masdar), which is the first of its kind in the Middle East. The partnership, which began production in late 2024, uses renewable hydrogen to extract iron from ore, replacing fossil fuels in one of the most energy-intensive steps of the steelmaking process.

The project was certified by Avance Labs and verified by Bureau Veritas ensuring the integrity of its green credentials. “Our partnerships with [Abu Dhabi National Oil Company] Adnoc, and Masdar are advancing carbon capture and green-hydrogen steelmaking, turning ambition into operational reality,” Al-Remeithi said. “This is how we move from vision to measurable impact.”

For Abu Dhabi, green hydrogen is a natural extension of its role as a global energy producer transitioning towards cleaner fuels. Through initiatives led by Masdar, Taqa, Adnoc and Emsteel, the emirate is laying the foundations for an industrial ecosystem where green molecules – hydrogen, ammonia and e-fuels – become the feedstock for low-carbon manufacturing.

The launch of TrueGreen brings these achievements together under a coherent brand and data-driven certification framework. All TrueGreen steel products come with independently verified Environmental Product Declarations and digital traceability systems that provide batch-specific carbon data, allowing contractors, developers and financiers to track emissions with unprecedented precision.

“Developers face stricter regulations and investor pressure,” Al-Remeithi said. “Sustainability is no longer optional – it is a must for growth. Emsteel is your partner to thrive in this new reality, offering years of investment and innovation in a framework that transforms environmental leadership into direct value for our customers.”

Industrial strategy

The emirate’s leadership in green steel is part of a broader industrial strategy anchored in Operation 300bn and implemented by the Ministry of Industry & Advanced Technology (MOIAT). The strategy seeks to strengthen national manufacturing while ensuring that growth is consistent with the UAE’s net-zero trajectory.

Emsteel’s progress illustrates how this dual mandate can work in practice. Through its partnerships with Adnoc on carbon capture, Masdar on hydrogen and the Department of Energy on green certification, the company is helping shape the policy and technology frameworks that will define the region’s next industrial phase.

The importance of Abu Dhabi’s leadership extends beyond national borders. According to UK analytics firm GlobalData, the steel industry is responsible for up to 8% of global carbon emissions, making it one of the most challenging sectors to decarbonise.

By investing early in clean technologies and aligning with global frameworks, Abu Dhabi is positioning itself to supply the next generation of low-carbon materials demanded by global developers and infrastructure financiers.

“Our focus is clear,” Al-Remeithi said in closing. “To deliver high-quality products and sustainable solutions that meet the needs of today and tomorrow. In this journey, your trust and partnership remain essential.”

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Colin Foreman

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