Monday, September 26, 2022 – 10:40 am
ABU DHABI, 26th September / WAM / Emirates Steel Arkan has announced that it has entered into a partnership with Itocho Corporation and GFE Steel Corporation, a subsidiary of GFE Holdings, to study the possibility of establishing an iron production complex in Abu Dhabi. The complex is a key part of the global supply chain for low carbon steel.
Emirates Arkan Steel will work with the two Japanese companies to conduct the necessary feasibility studies for the establishment of integrated iron production plants in a suitable location for the project in Abu Dhabi to meet the growing demand for environmentally friendly steel products.
Under 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 from the second half of 2025 and its products will be supplied mainly to customers in Asia, including Japan’s GFE Steel.
The iron will be produced initially through an enhanced process using natural gas to reduce iron ore. The plan also includes the adoption of renewable energy sources in the manufacturing processes of the complex, as well as the use of green hydrogen in the future.
On this occasion, Eng. Saeed Ghamran Al Rumaithi, CEO of Emirates Steel Group, Arkan, said: “We are pleased to lead efforts to reduce carbon emissions at the level of the steel manufacturing sector in the Middle East, which supports the intensive global efforts to reduce carbon dioxide emissions. GFE Steel and Itocho are the first of its kind in the region.
In the event that the process of iron ore reduction using hydrogen turns into an approved steel production technology, Emirates Arkan Steel will 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, the Emirates Arkan Steel Group’s carbon footprint is actually much lower than its global peers thanks to its use of natural gas and advanced DRI technologies. The use of hydrogen will make our high-quality steel products more environmentally friendly and will support our customers’ efforts to achieve sustainability in their businesses.”
Jun Inomata, Chief Operating Officer, Metals and Mineral Resources Division, Itocho Corporation, said: “We are also pleased to be part of the key partners in this vital project that aims to create a low-carbon iron supply chain to reduce the carbon footprint and contribute to the iron and steel industries. Itocho will be responsible for sourcing high-quality iron ore through the supply chain it has built through trade and investment activities over decades, while Emirates Steel Arkan will contribute through its successful experience in operating a direct reduction plant and carbon capture, use and storage in iron production. For its part, GFE Steel Corporation will use the iron produced through this project to make steel and further reduce carbon dioxide emissions.”
WAM/ Ahmed Al Nuaimi/ Dina Omar