EMSTEEL Unveils Decarbonisation Plans to Reduce GHGs

Abu Dhabi-based EMSTEEL, one of the GCC region’s largest publicly traded steel and building materials manufacturers, on Monday unveiled its ambitious decarbonisation strategy and plans 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, the company aims to reach the ultimate goal of reaching net-zero emissions by 2050, EMSTEEL said in a regulatory filing with Abu Dhabi Securities Exchange (ADX) this morning.

This strategy underscores EMSTEEL’s 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.

To achieve a significant reduction in its carbon footprint, the Group will focus on implementing key decarbonisation strategies, including enhancing energy efficiency, incorporating advanced process optimisation technologies and utilising alternative fuels and raw materials in steel and cement production.

Additionally, it is also expected to accelerate the use of clean and renewable energy to cover 100% of electricity demand by 2030, EMSTEEL said in the filing.

EMSTEEL Group CEO Saeed Ghumran Al Remeithi said that the company was committed to leading the transformation of the construction and manufacturing sectors through sustainable practices. Our decarbonisation strategy not only aligns with the UAE’s Net Zero 2050 goals, but also positions itself 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,” he said.

The steel and cement industries are among the most carbon-intensive sectors globally, generating a substantial share of GHG emissions. Acknowledging both the challenges and the significant social and economic benefits of successful decarbonisation, EMSTEEL is committed to significantly reduce its Scope 1 and Scope 2 emissions in the coming years.

Substantial Progress

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 Carbon di-Oxide, which is 23% below the baseline year of 2019.

The above achievements have been driven by advancements in energy efficiency, the implementation of carbon capture technologies, and the integration of clean and renewable energy solutions.

Additionally, the Group continues pioneering critical decarbonisation technologies and has recently launched a ground-breaking pilot green hydrogen project—the first of its kind in the Middle East and North Africa—in collaboration with Masdar.

This initiative leverages green hydrogen to extract iron from iron ore, marking a significant milestone in the region’s journey toward sustainable steel production.