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EMSTEEL plans to significantly reduce greenhouse gas emissions by 2030

The company’s Decarbonisation Strategy aims to reduce GHG by 40% from its steel business and 30% from its cement units

EMSTEEL HQ
EMSTEEL is expected to accelerate the use of clean and renewable energy to meet 100 per cent of its electricity demand by 2030

Abu Dhabi’s EMSTEEL said it aims to reduce greenhouse gas (GHG) emissions in its Steel Business Unit by 40 per cent and in its Cement Business Unit by 30 per cent by the end of 2030.

Using 2019 as the baseline year, the region’s largest publicly traded steel and building materials manufacturers have set a target of reaching net-zero emissions by 2050.

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 in pursuit of its targets.

Additionally, it is also expected to accelerate the use of clean and renewable energy to cover 100 per cent of electricity demand by 2030.

This announcement shows EMSTEEL’s commitment to sustainable manufacturing, which aligns with the UAE’s Net Zero by 2050 Strategic Initiative and the Paris Agreement. EMSTEEL is also committed to driving industrial decarbonisation, in line with the UAE’s goal of reducing industrial emissions by 27 per cent by 2035 from 2019 levels.

Saeed Ghumran Al Remeithi, Group CEO – EMSTEEL, commented: “EMSTEEL is 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 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.”

EMSTEEL’s carbon reduction milestones

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 reducing 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, 23 per cent below the baseline year of 2019.

The group continues to pioneer decarbonisation technologies and, in collaboration with Masdar, recently launched a groundbreaking pilot green hydrogen project—the first of its kind in the Middle East and North Africa. The project uses green hydrogen to extract iron from iron ore, marking a significant milestone in the region’s journey toward sustainable steel production.

EMSTEEL was recognised as the 2024 Steel Sustainability Champion by the World Steel Association for its efforts in decarbonising steel production. The World Economic Forum also recognised the company for its efforts in decarbonising the iron and steel industry, placing it among the top five leading steel companies worldwide that have received this recognition.

Headquartered in Abu Dhabi, EMSTEEL operates 16 state-of-the-art plants, with a production capacity of 3.5 million tonnes of steel and 4.6 million tonnes of cement annually. ADQ, one of the region’s largest holding companies, owns the majority of the company.

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