EMSTEEL and ENEC Collaborate to Reduce Steel Emissions with Nuclear Energy

Post by : Bianca Suleiman

The EMSTEEL Group, recognized as one of the largest publicly listed producers of steel and building materials in the Middle East, has embarked on a transformative journey towards low-carbon steel manufacturing. This initiative's foundation is a newly expanded partnership with Emirates Nuclear Energy Company (ENEC).

Through this latest collaboration, EMSTEEL plans to harness electricity generated from nuclear power, which has been certified via Abu Dhabi's Clean Energy Certificates Programme. This strategic move aligns with the esteemed I-REC standard, overseen by Emirates Water & Electricity Company (EWEC). Consequently, EMSTEEL anticipates a significant reduction in emissions related to electricity consumption, a principal aspect contributing to the carbon footprint associated with steel production.

This groundbreaking initiative further propels EMSTEEL’s sustainability strategy, TrueGreen, consolidating its long-standing decarbonization efforts under a unified framework. Additionally, it underscores the increasing significance of nuclear power in delivering clean and dependable energy solutions for heavy industries throughout the UAE.

Strengthening a Decade-Long Alliance

This new agreement builds on a successful ten-year relationship between EMSTEEL and ENEC. As part of the Barakah Nuclear Energy Plant’s construction, the region's first operational multi-unit nuclear facility, EMSTEEL contributed approximately 160,000 tonnes of nuclear-grade rebar, fulfilling around 60 percent of the project's total rebar requirements. This endeavor highlights EMSTEEL's early involvement in the realization of the UAE's civil nuclear initiative.

By acquiring nuclear-based Clean Energy Certificates, EMSTEEL is poised to access low-carbon electricity, significantly decreasing its Scope 2 emissions. This effort also diminishes the overall carbon intensity of steel production in the UAE. EMSTEEL proudly stands out as the first steel manufacturer in the region to incorporate nuclear-certified clean energy, establishing a new precedent for transparency and accountability within one of the most carbon-intensive industries.

Aiming for 100% Clean Energy

Currently, EMSTEEL integrates clean energy sources into a substantial portion of its operations. Specifically, approximately 86 percent of the electricity powering its steel facilities and 14 percent for its cement operations derives from clean sources. This includes over 1.48 million megawatt-hours sourced from nuclear energy and more than 650,000 megawatt-hours from solar certificates.

The company targets achieving 100 percent clean electricity by 2030, adhering to its long-term decarbonization plan as well as the broader climate objectives set forth by the UAE.

In statements regarding this collaboration, Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, emphasized the critical role of clean energy, technology, and validated data in the context of genuine industrial decarbonization. He acknowledged that the enhanced partnership with ENEC aligns perfectly with EMSTEEL's ambitions to expand low-carbon steel production, exemplifying how national collaborations can catalyze industrial reform.

Nuclear Power for Industrial Applications

From ENEC's vantage point, this agreement exemplifies how carbon-free nuclear energy can serve demanding industrial users without jeopardizing grid reliability. Mohamed Al Hammadi, Managing Director and Group CEO of ENEC, remarked that this collaboration establishes a concrete framework for sectors striving to reduce emissions while maintaining competitive viability.

The Barakah Nuclear Energy Plant generates approximately 40 terawatt-hours of electricity each year, catering to up to 25 percent of the total power demand in the UAE. Its operations have been responsible for the avoidance of an estimated 22.4 million tonnes of carbon emissions annually. With a projected operational lifespan of at least 60 years, Barakah is poised to play a significant role in enhancing energy security and supporting both industrial expansion and the establishment of a more resilient national power grid.

Advancing Net Zero Goals

The partnership between EMSTEEL and ENEC serves as a testament to how cross-sector collaboration can propel the industrial transition in the UAE. By integrating clean and reliable nuclear energy into the heavy manufacturing landscape, the collaboration furthers the UAE’s Net Zero 2050 Strategy and solidifies the country's leadership in sustainable and low-carbon industrial advancement.