Emsteel announces net-zero milestone targets

17 February 2025

Abu Dhabi-based Emsteel aims to achieve a 40% reduction in absolute greenhouse gas (GHG) emissions in its steel business unit and a 30% reduction in its cement business unit by 2030, using 2019 as the baseline year, with the ultimate goal of reaching net-zero emissions by 2050.

Formerly known as Emirates Steel Arkan, the publicly-traded steel and building materials firm announced these targets as part of its ambitious decarbonisation strategy on 17 February.

In a statement, the group said it will focus on implementing key decarbonisation strategies to significantly reduce its carbon dioxide footprint.

These include enhancing energy efficiency,  incorporating advanced process optimisation technologies and utilising alternative fuels and raw materials in steel and cement production.

Th firm is also expected to accelerate the use of clean and renewable energy to cover 100% of electricity demand by 2030.

Emsteel Group CEO, Saeed Ghumran Al-Remeithi, said his firm’s decarbonisation not only aligns with the UAE’s Net Zero 2050 goals but also positions Emsteal as a global leader in low-carbon steel and cement production.

The steel and cement industries are among the most carbon-intensive sectors globally, generating a substantial share of GHG emissions.

Emsteel aims to significantly reduce its Scope 1 and Scope 2 emissions in the coming years. The Group has already made substantial progress in reducing Scope 1 and Scope 2 emissions, as well as emissions intensity during 2019 and 2023.

As of 2023 Emsteel’s total Scope 1 and 2 emissions stood at 4.5 million tonnes of CO₂, which is 23% below the baseline year of 2019.

Emsteel’s decarbonisation strategy underscored its  “commitment to sustainable manufacturing and aligns with the UAE’s Net Zero by 2050 Strategic Initiative, the UAE’s Nationally Determined Contribution (NDC 3.0), and the Paris Agreement”.

It  added: “Emsteel is dedicated to driving industrial decarbonisation in line with the UAE’s goal of a 27% reduction in industrial emissions by 2035 from 2019 levels.”

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

MEED understands the plant utilises solar power from the grid to produce hydrogen on site, although the capacity of the pilot plant has not yet been disclosed.

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

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.

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.

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Jennifer Aguinaldo
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