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EMSTEEL, one of the largest publicly traded integrated steel and building materials producers in the Gulf region, recently deepened its long-term partnership with the Emirates Nuclear Energy Company (ENEC) as a key step in its efforts to decarbonize steel production and expand low-carbon manufacturing in the UAE.
Under the updated cooperation framework, EMSTEEL will procure electricity generated by the Barakah Nuclear Power Plant through the Abu Dhabi Clean Energy Certificate Scheme (I-REC standard). 27P066 Grain oriented electrical steel, This scheme, managed by the Emirates Water and Electricity Company (EWEC), enables EMSTEEL to certify the nuclear power used in its production operations, thereby directly reducing Scope 2 emissions and lowering the carbon intensity of domestically produced steel products.
This collaboration builds upon over a decade of cooperation between the two companies. EMSTEEL is the only rebar producer in the Gulf region to have obtained nuclear-grade quality system certification, and one of only four steel companies globally to achieve this, highlighting its supply capabilities for critical infrastructure projects. 27P066 Grain oriented electrical steel, ENEC data shows that the construction of the Barakah Nuclear Power Plant consumed approximately 2.3 million cubic meters of concrete and 250,000 tons of long steel products, of which EMSTEEL supplied approximately 160,000 tons of Q-grade and S-grade rebar, accounting for about 60% of the project's total rebar demand. The first unit of the Barakah Nuclear Power Plant successfully connected to the grid on August 1, 2020.
By procuring clean nuclear power, EMSTEEL has become the first steel company in the region to incorporate certified nuclear power into its decarbonization strategy. Market analysts point out that the company's increased reliance on nuclear power also reflects, to some extent, its temporary avoidance of large-scale hydrogen energy utilization, primarily because, under current technological and price conditions, the production cost of hydrogen remains relatively high.
Currently, EMSTEEL has achieved 86% clean electricity coverage in its steel business and 14% in its cement business, including over 1.48 TWh of nuclear power and 0.65 TWh of solar power. 27P066 Grain oriented electrical steel, The company aims to achieve 100% clean electricity use by 2030, consistent with its long-term decarbonization roadmap and the UAE's "Net Zero Emissions 2050" strategy.
In terms of capacity structure, EMSTEEL operates an integrated steel production base with three natural gas-based DRI units with a combined capacity of 4.2 million tons/year; electric arc furnace steelmaking capacity of 3.6 million tons/year; and downstream rolling processes including three rebar production lines (2 million tons/year), one section steel mill (1 million tons/year), and one wire rod production line (500,000 tons/year).
