The planned Abu Dhabi plant for ferrous raw material could be commissioned in the second-half of 2025. Image Credit: Supplied

Dubai: Even steel needs to turn ‘green’. Emirates Steel Arkan has roped in Japan’s Itochu Corp. and JFE Steel Corporation to consider a ferrous raw material production facility in Abu Dhabi that would be an ‘integral part of a global low carbon emission iron supply chain’.

Ferrous raw material would initially be produced through an enhanced decarbonised process using natural gas to reduce iron ore. The project also makes provisions for the adoption of renewable energy power sources, as well as green hydrogen for the reduction process.

As part of the initial plan, high grade iron ore will be imported into Abu Dhabi for the production of the ferrous raw material, expected to begin in the second-half of 2025 and supplied to customers primarily operating in Asia, including JFE Steel.

“If hydrogen reduction becomes an established technology in the production of steel, Emirates Steel Arkan will rapidly harness it in order to further reduce its carbon emissions,” said Saeed Ghumran Al Remeithi, Group CEO of the Abu Dhabi entity. “Globally, some 80 per cent of the CO2 emitted from steelmaking is the result of using coke in the blast furnace during the iron ore reduction process.

“The Group’s carbon footprint, however, is already significantly lower than that of its global peers thanks to its use of natural gas and advanced direct iron reduction technologies. The use of hydrogen might make our high quality and durable steel products even more environmentally friendly and support the sustainability of our customers.”

The goal of the project is to create a low carbon emission iron supply chain reducing the carbon footprint and contribute to the global iron and steel industries heading to greenalization

- Jun Inomata, COO of Metals & Minerals Resources Division of Itochu Corp.