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Emsteel and Masdar inaugurate pilot hydrogen plant

28 October 2024

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Emsteel and Abu Dhabi Future Energy Company (Masdar) have inaugurated a pilot green hydrogen plant at Emsteel's manufacturing complex in Mussafah, Abu Dhabi.

The pilot project's electrolyser capacity and equipment supplier have not yet been disclosed.

MEED understands the plant utilises solar power from the grid to produce hydrogen on site.  

The project sets the stage for Emsteel to use green or renewable hydrogen, instead of natural gas, to extract iron from iron ore.

Emsteel Group CEO, Saeed Ghumran Al-Remeithi, said the partnership with Masdar is part of a commitment to "accelerate decarbonising green steel production in the UAE and the wider Middle East and North Africa (Mena) region".

During the launch event for the plant, Al-Remeithi said the project marks a significant step towards making the UAE "a world green hydrogen leader" and Emsteel "a hub for green steel".

In a press briefing on 28 October, Saeed Al-Ghafri, CEO of Emirates Steel, said the plan is to scale up the pilot green hydrogen facility to enable it to meet demand for green steel both locally and from abroad.

"We are decarbonising across verticals through carbon capture and green hydrogen … to serve the UAE market and eventually to go global," he said.

Al-Ghafri declined to confirm whether the plan entails developing a major integrated facility with Masdar in one of two planned green hydrogen oases in Abu Dhabi, or offtaking the hydrogen produced at one of the future facilities planned in the emirate.

Previously known as Emirates Steel Arkan, the steel and cement producer rebranded as Emsteel in September as part of a broader strategy to accelerate operational transformation and expand its global footprint.

Headquartered in Abu Dhabi, Emsteel operates 16 plants with an annual production capacity of 3.5 million tonnes a year (t/y) of steel and 4.6 million t/y of cement. The company exports its products to over 70 markets, which account for 30% of its sales.

The rebranding followed the merger of Emirates Steel and Arkan Building Materials in late 2021, establishing the UAE’s largest steel and construction materials company, valued at $3.53bn.

Emsteel, which contributes 11% of Abu Dhabi’s manufacturing output, operates through two main divisions: Emirates Steel and Emirates Cement.

The cement division includes Al-Ain Cement Factory, Emirates Blocks Factories, Anabeeb and Arkan Bags.

Emsteel has a focus on low-carbon products, with the group committing to reduce carbon emissions as part of the UAE’s Net Zero by 2050 strategic initiative, with 80% of its operations powered by clean energy.

The company is also a key player in the UAE’s industrial strategy, Operation 300bn, holding a 60% share of the UAE’s steel market.

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Jennifer Aguinaldo

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