Abu Dhabi-based Emsteel has completed a pilot project with Italian metals and machinery manufacturer Danieli to launch the first electric process gas heater (ePGH) pilot for the steel sector.

The ePGH pilot replaces conventional gas-fired heaters with an electric alternative at Emsteel’s direct reduced iron (DRI) plants, eliminating over 2,200 tonnes a year (t/y) of carbon dioxide (CO₂) using green electricity.

Engineered “in close collaboration with Danieli’s [research and development] R&D division”, the system has undergone rigorous simulation, testing and modelling to ensure optimal performance under industrial conditions, Abu Dhabi Securities Exchange-listed Emsteel said.

This pilot is not only a first in the global steel sector but also a scalable model for future retrofits. By replacing fossil-fuel-based heat sources with clean electric alternatives, “Emsteel is creating a tangible pathway towards net-zero operations”.

Starting with a 1.3MW pilot phase, the project sets the foundation for scaling up to a 22.7MW system that could “redefine how thermal processes are decarbonised across the steel industry”, Emsteel said.

“The initiative marks a pivotal step in Emsteel’s decarbonisation roadmap, reinforcing its leadership in the region’s transition to low-emission industrial processes.

“This innovation directly supports Emsteel’s commitment to reducing emissions by 40% by 2030 in its steel business division and represents a critical step in its broader green steel strategy,” it added.

Sustainability drive

Headquartered in Abu Dhabi, Emsteel operates 16 plants with an annual production capacity of 3.5 million t/y of steel and 4.6 million t/y of cement. The company exports its products to over 70 markets, which account for 30% of its sales.

The company was formed in late 2021 as a result of a merger between Emirates Steel and Arkan Building Materials. This established the UAE’s largest steel and construction materials company, valued at $3.53bn.

Emsteel, which contributes 11% of Abu Dhabi’s manufacturing output, operates through two main divisions: Emirates Steel and Emirates Cement. The cement division includes Al-Ain Cement Factory, Emirates Blocks Factories, Anabeeb and Arkan Bags.

The company is also a key player in the UAE’s industrial strategy, Operation 300bn, holding a 60% share of the UAE’s steel market.

In May this year, Emsteel announced plans to expand its sustainability efforts by establishing an ‘iron eco hub’ in the emirate.

Prior to that, in February, Emsteel said it aims to achieve a 40% reduction in absolute greenhouse gas (GHG) emissions in its steel business unit and a 30% reduction in its cement business unit by 2030, using 2019 as the baseline year, with the ultimate goal of reaching net-zero emissions by 2050.

This was followed by another announcement that it would invest about AED625m ($170m) in increasing its production capabilities and adding new steel products to its portfolio.

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