Emirates Steel Arkan is pushing forward on green plans: ADX-listed Emirates Steel Arkan has signed an MoU with the UAE’s AD Ports Group, Japan’s Itochu Corporation, and JFE Steel Corporation to work on establishing an integrated low-carbon iron supply chain complex, according to a statement. The plant will be the first of its kind in the world, the statement said, but no financial details or a project timeline have been disclosed.

It’s green all round: The project will use renewables and green hydrogen to power the manufacturing process and establish the infrastructure necessary to support renewables, including building pellet plants and direct reduction plants, the statement outlined.

Who’s doing what: The four parties will together develop a framework outlining the logistical and digital requirements for the new low-carbon iron supply chain, and a plan to exchange knowledge in the field, the statement notes. AD Ports will provide the land for the new plant in Khalifa Economic Zones Abu Dhabi (KEZAD), operate the maritime and logistics services to supply iron ore to the plant, and export the green products.

We’ve been expecting this: Emirates Steel Arkan has been in talks with the two Japanese companies since September 2022 to conduct feasibility studies for an iron ore processing facility in Abu Dhabi.

The demand for green steel and iron are expected to grow: Given that the iron and steel sector is one of the largest industrial producers of CO2, accounting for some 7-9% of all direct fossil fuel emissions, the EU is planning to introduce a levy on its import by 2026 as part of its carbon border adjustment mechanism. Egypt, the UAE, and Saudi Arabia are among the top iron and steel exporting countries, making their transition to green steel crucial to remain competitive in the global market. The Institute for Energy Economics and Financial Analysis released a report (pdf) last year identifying the region’s potential to lead the world in green steel production.