UAE's Green Steel Initiative: A Step Towards Decarbonization
Key Ideas
- The UAE has successfully piloted the use of green hydrogen in steel production to combat carbon emissions, aligning with national strategies for a net-zero future.
- Despite concerns over costs, regulations, and scalability, the global green steel market is projected to grow significantly, reaching $129 billion by 2032.
- Neighboring countries like Saudi Arabia and Oman are also investing heavily in green hydrogen production, signaling a shift towards sustainable energy sources in the region.
- The industry acknowledges that cost is a major challenge, but with government support and technological advancements, the adoption of green hydrogen is expected to increase globally.
The UAE is taking a significant step towards decarbonization by exploring the use of green hydrogen in steel production to tackle the industry's substantial carbon emissions. Through a pilot program led by Emsteel and Masdar, 'green' steel has been successfully produced using green hydrogen electrolysers powered by solar energy, as part of the UAE's National Hydrogen Strategy 2050 and the Abu Dhabi Low Carbon Hydrogen Policy. While the initiative aims to address environmental concerns, challenges such as cost, regulations, and scalability remain prevalent.
The market for green steel is forecasted to experience remarkable growth, with its value expected to surge from $2.6 billion in 2023 to a staggering $129 billion by 2032. Despite its promising future, the transition to green steel comes at a premium, potentially costing up to 25 percent more than traditional steel. Concerns over commercial viability persist, with some estimating an additional $150 per tonne for green steel.
Moreover, the article highlights the growing interest in green hydrogen production across the GCC countries, with Saudi Arabia and Oman investing billions in large-scale projects. Despite current challenges, industry experts remain optimistic about the role of green hydrogen in achieving global sustainability goals. While cost remains a significant obstacle, supportive government policies and regulations are seen as key drivers for accelerating investment in the green hydrogen sector. Ultimately, the industry anticipates a shift towards sustainable practices, with green hydrogen playing a crucial role in the future energy landscape.