As the world increasingly focuses on sustainability and reducing carbon footprint, the steel industry has emerged as a pivotal player in driving meaningful change. Arabian Gulf Steel Industries (AGSI) is at the forefront of this transformation, leveraging the UAE’s waste resources to create sustainable steel through innovative steelmaking and recycling practices.
AGSI, a national company based in Abu Dhabi specialising in manufacturing sustainable steel, has announced achieving net zero carbon emissions for its steelmaking operations. Further, the company is the first steel plant in the world to achieve carbon neutrality (accredited by a leading global auditor). This commitment is part of the company’s strategy to enhance environmental responsibility and sustainable manufacturing.
This remarkable achievement is in line with the objectives of the UAE’s National Strategy for Industry and Advanced Technology and the requirements of the circular economy and green industries. The milestone was recognised and announced at The Make It In The Emirates (MIITE) event, in the presence of members of the Ministry of Industry and Advanced Technology (MOIAT) and Ministry of Climate Change and Environment.
Industry pioneers
AGSI is the largest steel recycler in the UAE, with a facility producing 600,000 metric tons of steel products annually from 100 per cent locally sourced steel raw material.
As a carbon neutral steel manufacturer, AGSI’s commitment to environmental stewardship and sustainable manufacturing makes the company a pioneer in the green economy field and a pre-eminent contributor to the UAE’s net zero vision and circular economy. “Our mission is to set the benchmark for sustainability and excellence in the steel industry. We intend to set a new standard in steelmaking, which will one day become a new normal. Together we can create meaningful and lasting change whilst contributing towards the UAE’s net zero goals,” says Asam Hussain, CEO, AGSI.
The company invests in decarbonisation strategies and low-carbon technologies to fulfill its commitment to sustainability. In 2023, AGSI reduced its carbon footprint by 30 per cent year-on-year, from 0.2tCO2e/tcs in 2022 to 0.14tCO2e/tcs in 2023 and further to net zero for its steelmaking facility in Abu Dhabi. This remarkable achievement made the company the only steel producer in the region with net zero steel production.
Largest steel recycler
In its journey toward decarbonisation, steel scrap has become a cornerstone of AGSI’s manufacturing process playing an important role in the UAE’s circular economy. As the largest steel recycler in the UAE, the company produces steel from 100 per cent locally sourced steel scrap for local construction and infrastructure projects. This creates the circularity of steel and endless use of steel (making it a fundamental component to the circular economy).
It is important to note that every ton of steel scrap used for steel production avoids the emission of 1.5 tons of CO2, and the consumption of 1.4 tons of iron ore, 740kg of coal and 120kg of limestone (source: World Steel Association). AGSI is, therefore, an enabler and accelerator in meeting decarbonisation goals and is a key contributor to the green economy.
High on technology investment
AGSI has invested in innovative processes and state-of-the-art technologies to reduce carbon footprint and lower greenhouse gas emissions. The company is leading the way by adopting scrap-based Electric Induction Furnace (IF) technology, a key component in their commitment to decarbonisation. The use of electric IF represents a significant shift from traditional steelmaking methods, which are heavily reliant on coal and iron ore. Instead, AGSI’s IF technology uses 100 per cent electricity, which is partially sourced from renewable energy, to melt steel scrap, transforming it into high-quality steel products.
This process not only reduces the need for virgin raw material but also substantially reduces energy consumption and carbon emissions as there is no emissions of CO2, NOx, and SO2 during the melting process.
Crucial partnerships
AGSI’s team is also working with a number of major developers who prioritise green materials like net zero steel to create buildings and infrastructure that are not only efficient and resilient but also aligned with global climate goals. The company is at the forefront of this movement, leading the steel industry towards a future where sustainability is the standard, not the exception. The entire AGSI team is excited and motivated to actively contribute to the country’s green initiative, playing a vital role in the national drive towards a sustainable future.
AGSI’s continuous decarbonisation efforts and a broader commitment to the environmental, social, governance (ESG) agenda, are at the heart of the company’s corporate strategy. The team understands that the journey to a greener future requires collaboration, innovation, and dedication. Each member of the organisation is aligned with the shared goal of reducing the environmental footprint, whether through adopting new technologies, improving processes, or engaging in community initiatives that support sustainability.
In addition, the focus on People Sustainability and pioneering green skills agenda is driving the company to excel in environmental stewardship and contributing to the climate change agenda.
Hussain says, “As the first net zero steel plant in the UAE that has achieved carbon neutrality, our energy-efficiency practices are a crucial contributor to our carbon-free manufacturing production process and a key pillar of our Sustainability Strategy contributing to the green economy.
As one of the hosts of the Energy Efficiency Club, established in partnership with the Abu Dhabi Distribution Company, a subsidiary of the Abu Dhabi National Energy Company (TAQA), we are dedicated to sharing our knowledge and best practices in energy management, various energy efficiency initiatives undertaken by us, as well as our environmental stewardship to promote sustainable manufacturing practices.”
