Emirates Steel Arkan (EMSTEEL) has unveiled its new decarbonisation strategy to reach net-zero emissions by 2050, reports say.
The company has announced plans to cut absolute greenhouse gas (GHG) emissions by 40 percent in its steel business unit and by 30 percent in its cement business unit by 2030, using 2019 as the baseline year. The announcement was made in a statement filed on the Abu Dhabi stock exchange on Monday, the company said in a statement provided to Abu Dhabi stock exchange on Monday.
Aligning with the UAE’s target to reduce industrial emissions by 27 percent by 2035 from 2019, the company’s decarbonisation strategy focuses on improving energy efficiency, adopting advanced process optimisation technologies, and integrating alternative fuels and raw materials into its steel and cement production processes.
Engineer Saeed Ghumran Al Remeithi, Group CEO – EMSTEEL, said, “EMSTEEL is committed to leading the transformation of the construction and manufacturing sectors through sustainable practices. Our decarbonization strategy not only aligns with the UAE’s Net Zero 2050 goals but also positions EMSTEEL as a global leader in low-carbon steel and cement production. Through innovation, investment, and collaboration, we are building a more sustainable future for our industry and our planet.”
Additionally, the steel producer expects to increase the use of clean and renewable energy to cover 100 percent of electricity demand by 2030. The most carbon-intensive sectors, being steel and cement industries globally, contribute greatly to GHG emissions.
EMSTEEL said it has made substantial progress in the reduction of scope 1 and scope 2 emissions and the intensity of emissions between 2019 and 2023. As of 2023, the emissions stood at 4.5 million tonnes of CO₂, 23 percent less than 2019.
Additionally, the company has partnered with UAE renewable energy leader Masdar to launch a pilot green hydrogen project. The initiative focuses on using green hydrogen to extract iron from iron ore, advancing sustainable industrial practices.