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UAE Steel Producer EMSTEEL Achieves 45% Carbon Reduction With Green Hydrogen
- HX
- 4 days ago
- 4 min read
EMSTEEL Group is emerging as a leader in sustainable steel manufacturing, demonstrating that heavy industry can successfully reduce emissions while maintaining competitive production at scale. The UAE-based steel producer has achieved a carbon intensity of just 0.67 tonnes of carbon dioxide per tonne of steel produced, positioning itself nearly halfway below the global industry benchmark and setting a new standard for low-carbon manufacturing in the Middle East.
Chief Executive Officer Saeed Ghumran Al Remeithi outlined the company's comprehensive decarbonization strategy, which builds on years of systematic investment in clean energy infrastructure, hydrogen technology, and carbon capture systems. The progress represents more than incremental improvements. EMSTEEL has already cut emissions by 30 percent compared to its 2019 baseline, with ambitious targets to reduce steel production emissions by 40 percent and cement manufacturing emissions by 30 percent by 2030, ultimately pursuing complete climate neutrality by 2050.
The company's approach integrates multiple industrial pathways to achieve these reductions. Clean electricity now powers 86 percent of EMSTEEL's operations, with plans to reach 100 percent renewable energy by the end of the decade. This transition to clean power forms the foundation of the company's emissions reduction strategy, complemented by ongoing investments in process optimization and circular economy principles that connect steel and cement production within a unified industrial ecosystem.
EMSTEEL has also made significant advances in carbon capture technology, removing approximately 800,000 tonnes of carbon dioxide annually through a partnership with ADNOC. This large-scale carbon management initiative supports the UAE's broader climate objectives while providing EMSTEEL with practical experience in industrial-scale carbon removal that could be replicated across other heavy manufacturing sectors. The captured carbon contributes to regional carbon management infrastructure and demonstrates viable pathways for emissions reduction in traditionally high-carbon industries.
Perhaps most notably, EMSTEEL has launched what it describes as the region's first green hydrogen facility dedicated to sustainable steel production, developed in collaboration with Masdar. Hydrogen-based steelmaking represents one of the most promising technologies for deep decarbonization in the steel sector, potentially eliminating the need for coal-based reduction processes that currently account for the majority of steelmaking emissions. This early investment positions EMSTEEL to scale hydrogen operations as the technology matures and costs decline over the coming decade.
The company's circular economy initiatives extend beyond traditional recycling by systematically reusing steel production by-products in cement manufacturing. This integration reduces waste streams, lowers raw material consumption in cement production, and creates synergies between different business units that strengthen the overall sustainability profile. By treating industrial by-products as valuable inputs rather than waste, EMSTEEL is building a more resource-efficient production model that could serve as a template for other diversified industrial groups.
Market demand for low-carbon steel is accelerating globally, driven by corporate sustainability commitments, green building standards, and increasingly stringent carbon regulations. EMSTEEL has positioned itself to capture this demand through its TrueGreen programme, which provides customers with detailed carbon data and independently verified environmental declarations for each product. This transparency aligns with the European Union's Carbon Border Adjustment Mechanism, which will require importers to document the carbon intensity of steel products and pay levies on emissions above certain thresholds.
The TrueGreen framework gives EMSTEEL a competitive advantage in European markets, where steel buyers face growing pressure to source low-carbon materials that meet strict regulatory standards. By providing plant-level emissions data and verified documentation, EMSTEEL can demonstrate compliance with evolving carbon regulations while offering customers the assurance they need to meet their own sustainability targets. This capability becomes increasingly valuable as carbon border mechanisms expand and more countries implement similar policies.
EMSTEEL has begun translating its sustainability achievements into commercial partnerships through agreements with major developers including Modon Properties and Mered Developments. These memoranda of understanding aim to deploy EMSTEEL's low-carbon steel across large-scale construction projects throughout the UAE and the broader Middle East and North Africa region. As sustainable building practices become standard rather than exceptional, these partnerships position EMSTEEL as a preferred supplier for projects seeking green building certifications or pursuing net-zero construction goals.
The company's growing profile in sustainability circles reflects its systematic integration of climate objectives into core operations. EMSTEEL's participation in Abu Dhabi Sustainability Week 2026 represents its largest presence at the event since its inception, signaling the company's commitment to industry leadership on climate issues. The Diamond Sustainability Label awarded by the Abu Dhabi Chamber of Commerce and Industry recognizes EMSTEEL's achievement of the highest level of sustainability integration, validating the company's multi-year investment in decarbonization technology and operational transformation.
EMSTEEL's progress demonstrates that steel manufacturing can achieve substantial emissions reductions through systematic application of available technologies including renewable energy, hydrogen, carbon capture, and circular economy principles. The company's 45 percent reduction below global average carbon intensity shows that low-carbon steel production is technically feasible and commercially viable today, not just a distant future possibility. As carbon regulations tighten globally and customers increasingly prioritize sustainable materials, EMSTEEL's early investments in clean production technology position the company to compete on both environmental performance and cost effectiveness in an evolving global steel market.