Innovation

The Emirates Steel Arkan’s facilities in Abu Dhabi companies are already installing electrolyzers, which is a key component in making hydrogen. This approach aims to decarbonize the steel production process, making it more environmentally sustainable, as steel manufacturing contributes between 7 and 8 percent of worldwide carbon emissions (Masdar, Emirates Steel Arkan to Develop “green Steel,” 2023). The GCEO advisor elaborated on this in our interview: “This innovation is a small step towards a great future of decarbonizing using green hydrogen. It has the same impact of planting 1060k trees, and it's one of the key pillars of our mission of becoming green steel producers.” Therefore this innovation aligns with a sense of mission as Emirates Steel Arkan and Masdar emphasize their commitment to a decarbonization roadmap and sustainability objectives by adopting green hydrogen for steel production in addition to the commitment to achieving Net Zero by 2050, indicating a broader purpose of contributing to global environmental goals.

Inspiration

With the goals of decreasing carbon emissions and net zero by 2050, Emirates Steel is ambitious in taking the first step towards a sustainable future. Not only are they the only company in the UAE that specializes in steel, but they are planning to pioneer themselves as the leaders of the market. They want to ease the start of their journey in transitioning from using natural gasses to green hydrogen. As the interviewee mentioned “Collaboration is considered a main pillar in energy transition”, and emphasizes how without strength and unity, they wouldn’t be able to achieve such goals for future generations. The idea came about by thinking of unique ways of introducing an innovation that can be supplied to customers while decreasing their carbon emissions that impact the environment. With this new market of having a green product of steel, collaborating helps develop projects that have an impact on the full value chain (Masdar and Emirates Steel Arkan to develop MENA region's first green hydrogen-based project to decarbonize the UAE's hard-to-abate steel sector 2023).

In line with the SDGs set for 2030, they focused on 3 main goals. They were inspired to focus on goal 7 which revolves around the usage of clean and renewable energy. The interviewee stated that they had a goal of using renewable energy sources to decrease emissions by “40% by 2030”. In addition, they focused on goal 9: industry, innovation, and infrastructure. They want to specifically achieve target 9.4 focusing on upgrading all industries and infrastructures for sustainability. This will be implemented through the use of hydrogen-intensive processes that record a lower rate of CO2 emissions. The interview also noted that the company aligns its goals with SDG 13 as they set to significantly reduce the greenhouse gasses emitted from their activities to combat global warming.

Overall impact

The project has both short-term and long-term impacts. One of the short-term effects mentioned in the interview is the strategic collaboration Emirates Steel has implied with Masdar which aids their partnership with possible future projects. It helps them change their traditional business models from a transactional approach to more of a collaborative approach that helps them make more progress and develop projects. One of the employees stated "It is to be determined how we sustain and build upon the successes of the green hydrogen project, but our plan includes increasing volumes of clean hydrogen to meet decarbonization goals in the Paris Agreement." it showcases the journey

Emirates Steel is taking towards acquiring better and healthier results of producing steel more sustainably. Furthermore, these little steps can impact the long-term effects such as achieving the global net zero goal by 2050 and enhancing factors like society, environment, and business. Evidence was found to show that it is more efficient to use strategies involving collaboration which results in many collaborative advantages (Kanter, 1994).

Business benefit

The Green hydrogen project made by the partnership between Emirates Steel Arkan and Masdar is set to start operating in early 2024 and is an innovative initiative that showcases positive impacts on businesses, the environment, and society. For the business, the collaboration between Emirates Steel Arkan and Masdar illustrates the power of strategic partnerships in achieving sustainability goals as it shows a dedication to innovation and working together to address these issues and challenges. As the interviewee mentioned that the profit is confidential, he did give us some insights on how profit can be gained. Electricity and hydrogen prices are positively correlated with one another. As long as electricity prices decrease, there will be some noticeable increase in profit due to the decrease in hydrogen prices. This can drive other businesses to adopt this project to reduce the harmful effects of fossil fuels and utilize the same services of producing steel with affordable prices, which ultimately makes Emirates Steel gain profit.

Social and environmental benefit

Impacts on society include promoting economic growth and job creation. Steel is a fundamental item that motivates various industries and the successful implementation of green hydrogen technology in its production, could lead to a more sustainable and resilient steel sector. Furthermore, this can contribute to the overall economic development of the UAE by ensuring the availability of key raw materials for construction, infrastructure, and manufacturing.

In terms of environmental impact, the use of green hydrogen instead of natural gas can lead to a significant reduction in carbon emissions. The steel industry is a major contributor to greenhouse gas emissions globally, and this project's focus on decarbonization aligns with the goals of mitigating climate change. By showcasing the viability of green hydrogen in steel production, the project sets a model or an example for cleaner and greener industrial practices inspiring similar initiatives all around the globe (Emirates Steel Partners With Masdar on Green Hydrogen Project, 2023).

Interview

Dr. Dimitriou, GCEO Advisor