As the world convenes in Baku this year to drive international climate action, key players from around the globe are taking part in the event to send a clear message: true change can only be made through collaboration. This is particularly true if we intend to make a tangible difference across hard-to-abate sectors, which include chemicals, aviation, agriculture, and of course, steel and cement production.
Global demand for steel has been growing in recent years and it is only expected to increase. The production of steel rose almost tenfold from 190 million tonnes in 1950 to almost 1.85 billion tonnes in 2023, driven by population growth and country development plans. Currently, steel contributes to 7 per cent of global emissions, and despite efforts to decarbonise this critical sector, many challenges persist, including a heavy reliance on carbon-intensive processes for production, high costs associated with alternative energy options, supply chain and resource constraints, technological readiness and policy and regulatory support.
Likewise, cement production is responsible for about 8 per cent of global carbon emissions. Forecasts show that carbon emissions from the sector will rise to 3.8 billion tonnes per year. If we do not alter the way we produce cement swiftly, then this figure will likely continue to grow.
It is simply not realistic to expect drastic changes to take place with different players working on their own initiatives in silos. Collective, decisive action is required, where true collaboration needs to take place between governments, the private sector, tech players and global markets to ensure that our aspirations of creating sustainable steel and building materials industries come to fruition.
I have often stated that the UAE is the perfect platform for pioneering sustainable and innovative practices and to promote internationally exportable solutions. That is because collaboration is a value that is deeply embedded in our culture, where players across the ecosystem work hand-in-hand to drive our nation’s strategic goals. The UAE’s Net Zero by 2050 agenda is one that we have all embraced and are honoured to take part in, as we drive impact not just for ourselves, but for our regional partners and across the globe.
Last month, we announced the successful completion of our pilot project with our partner Masdar. The Abu Dhabi-based initiative, the first-of-its-kind in the Middle East and North African region, uses green hydrogen to extract iron from iron ore, a key step in steelmaking. The pilot project is now fully operational and has successfully commenced the production of green steel. We are immensely proud of our partnership with Masdar, clearly showcasing the potential for green hydrogen to decarbonise the global steel value chain and reflecting the UAE’s spirit of joint efforts to advance energy transition.
We have also recently announced a strategic collaboration with A³&Co to implement a cement specific decarbonisation roadmap, with a primary focus on reducing carbon emissions while lowering costs. Furthermore, we have partnered with Tadweer to develop a Waste to Fuel concept, aiming to substitute 22 per cent of natural gas consumption in the long term.
Innovation is key to ensuring scalable, cost-effective mechanisms towards decarbonisation. The World Economic Forum has stated that digital technologies have the potential of reducing emissions by 20 per cent by 2050 in the three highest-emitting sectors: energy, materials, and mobility. This is a principle that we have understood and embraced early-on within EMSTEEL.
For instance, we have been in a partnership with ADNOC since 2017, collaborating on their Al Reyadah Carbon Capture, Utilisation, and Storage (CCUS) technologies facility, which processes CO2 captured from our operations. Furthermore, technologies such as predictive maintenance and real-time monitoring help us in minimising waste, reducing energy consumption, and ensuring better control of material usage.
With regards to our cement production operations, we have adopted AI and Autopilot smart plants to improve efficiency and reduce emissions. We are also proud to have developed low-carbon cement (LC3 & LC2) successfully, in addition to actively working on reducing the clinker ratio in cement production.
In the words of former US president Barack Obama: “We are the first generation to feel the impact of climate change and the last generation that can do something about it”. Decarbonising hard-to-abate sectors, including the production of steel and cement, is challenging. However, technological advancements, strategic partnerships, and increasing global collaboration can make it a reality. As the UAE’s largest publicly listed steel and building materials company, we are committed to playing our role in building a better tomorrow for all.
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