Abu Dhabi - Mubasher: Emirates Steel Arkan has teamed up with ITOCHU Corporation and JFE Steel Corporation, a unit of Japan-based JFE Holdings, to consider setting up a ferrous raw material production facility in Abu Dhabi.
The three parties will collaborate to create a ferrous raw material steel hub to meet the increasing demand for green steel. The facility is set to become an integral part of a global low carbon emission iron supply chain, according to a press release.
As per the initial plan, high-grade iron ore will be imported into Abu Dhabi to produce the ferrous raw material, which is expected to commence during the second half (H2) of 2025 and will be supplied to customers across Asia, including JFE Steel.
Meanwhile, the project makes provisions for the adoption of renewable energy power sources, as well as green hydrogen for the reduction process.
Jun Inomata, COO of Metals & Minerals Resources Division of ITOCHU Corporation, elaborated: “The goal of the project is to create a low carbon emission iron supply chain reducing the carbon footprint and contribute to the global iron and steel industries heading to greenalisation.”
Inomata noted: “ITOCHU will be responsible for sourcing the high-grade iron ore through the network built by trading and investment activities over the decades,[while] Emirates Steel Arkan will utilise the experience of successful operation of the direct reduction plant with carbon capture, utilisation, and storage CCUS facility, which leads the way on carbon capture.”
He added: “JFE Steel will use the ferrous raw material produced through this project as a steelmaking raw material and promote CO2 emission reduction.”
In the January-June 2022 period, Emirates Steel Arkan shifted to net profits worth AED 279.86 million, compared to net losses of AED 23.24 million during the same period a year earlier.
