Emirates Arkan Steel announced that it has entered into a partnership with Itochu Corporation and GFE Steel Corporation, a subsidiary of GFE Holdings, to study the possibility of establishing an iron production complex in Abu Dhabi, so that this complex will be a major part of the global supply chain of low-carbon steel.
Emirates Arkan Steel will work with the two Japanese companies to conduct the necessary feasibility studies regarding establishing integrated factories for iron production in a suitable location for the project in Abu Dhabi to meet the growing demand for environmentally friendly steel products.
As part of the initial plan, high-quality iron ore will be purchased and supplied to Abu Dhabi for iron production. The new industrial complex is expected to enter production starting from the second half of 2025, and its products will be supplied mainly to customers in Asia, including the Japanese company “GFE Steel”.
Iron will initially be produced through an enhanced process using natural gas to reduce iron ore. The plan also includes adopting renewable energy sources in the complex’s manufacturing processes, as well as using green hydrogen in the future.
Engineer Saeed Ghumran Al Rumaithi, CEO of Emirates Steel Group Arkan, said - on this occasion -: “We are pleased to lead efforts to reduce carbon emissions at the level of the steel manufacturing sector in the Middle East region in a way that supports the intense global efforts to reduce carbon dioxide emissions, and our cooperation with “GFE Steel” and “Itosho” is considered the first of its kind in the region.
If the process of reducing iron ore using hydrogen becomes an approved technology in steel production, Emirates Arkan Steel will work to harness it quickly in order to enhance its efforts to reduce carbon emissions. Globally, about 80% of carbon dioxide emissions from the steel industry are the result of the use of coke in blast furnaces during the iron ore reduction process.
However, Emirates Arkan Steel Group's carbon footprint is actually much lower than its global counterparts thanks to its use of natural gas and advanced direct reduction iron technologies. The use of hydrogen will make the high-quality steel products we provide more environmentally friendly, and will also support our customers’ efforts to achieve sustainability in their businesses.”
For his part, Jun Inomata, Chief Operating Officer of Itoshu Corporation's Minerals and Mineral Resources Division, said: "We are also pleased to be part of the key partners in this vital project that aims to create an iron supply chain with low carbon emissions to reduce the carbon footprint and contribute to the green iron and steel industries. Itosho will be responsible for sourcing high-quality iron ore through the supply chain that it has built through trade and investment activities over many decades, while Emirates Steel Company Arkan will contribute through its successful experience in operating a factory Direct reduction, carbon capture, use and storage in the production of green iron. For its part, GFE Steel Corporation will use the iron produced through this project to make steel and promote the reduction of carbon dioxide emissions.”