Masdar and EMSTEEL: A Pilot Project Uses Green Hydrogen to Reduce Emissions in Steel Production

Masdar and EMSTEEL, based in Abu Dhabi, conduct a pilot project to produce steel using green hydrogen, aiming to reduce the carbon footprint of the steel industry in a region where heavy industry is essential.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The steel industry is a significant CO₂ emitter, accounting for approximately 7 to 8% of global emissions. Steel production relies on processes that require the use of coal to extract iron from ore, which is particularly energy-intensive and polluting. In this context, the pilot project conducted in Abu Dhabi by Masdar, a UAE-based renewable energy company, and EMSTEEL, the largest public steel producer in the United Arab Emirates, utilizes an innovative alternative to reduce these emissions by replacing coal with green hydrogen in the extraction process.

Green hydrogen is produced through water electrolysis powered by renewable energy sources such as solar or wind, enabling a production process without direct CO₂ emissions. This project marks the first of its kind in the Middle East and North Africa to use this technology in the steel industry. By minimizing the use of fossil sources, this process offers a cleaner alternative for producing steel, an essential material in the construction and infrastructure sectors.

Meeting the Decarbonization Needs of the Steel Industry

The demand for low-carbon construction materials is growing globally. The project by Masdar and EMSTEEL demonstrates how the integration of green hydrogen in the steel process can not only reduce CO₂ emissions but also align the sector with global energy transition goals. This initiative supports the United Arab Emirates’ strategy to promote sustainable materials, notably through the National Green Certificates Program launched in 2024 by the Ministry of Energy and Infrastructure.

A Model for Industrial Decarbonization Through Green Hydrogen

The use of green hydrogen in heavy industrial processes, such as steelmaking, represents a promising avenue to reduce the carbon footprint of sectors that are challenging to decarbonize. By exploring this solution, Masdar and EMSTEEL underscore the transformative potential of green hydrogen in the steel industry and its relevance for low CO₂ emissions production. The project thus offers a replicable model for other industrially active countries.

National Objectives and Strategic Role of Green Hydrogen

This pilot project is part of the United Arab Emirates’ Low Carbon Hydrogen Policy, which promotes the use of low-carbon hydrogen as a pillar of energy transition. This policy is integrated into the UAE’s National Hydrogen Strategy, with the goal of positioning the country as a leader in low CO₂ hydrogen production by 2031, to meet international emission reduction requirements and enhance energy security.

State-owned Chinese group Datang commissions a project combining renewable energy and green hydrogen within a coal-to-chemicals complex in Inner Mongolia, aiming to reduce stranded asset risks while securing future industrial investments.
Möhring Energie Group commits to a green hydrogen and ammonia production project in Mauritania, targeting European markets from 2029, with an initial capacity of 1 GW.
Air Liquide deploys two hydrogen-powered heavy-duty trucks for its logistics operations in the Rotterdam area, marking a step in the integration of low-emission solutions in freight transport.
French hydrogen producer Lhyfe will deliver over 200 tonnes of RFNBO-certified hydrogen to a heavy mobility operator under a multi-year contract effective since 1 November 2025.
Plug Power was selected by Carlton Power to equip three UK-based projects totalling 55 MW, under an agreement subject to a final investment decision expected by early 2026.
Hyroad Energy expands its services to include maintenance, software, and spare parts, offering a comprehensive solution for hydrogen freight operators in the United States.
Air Liquide has launched in Antwerp the first industrial-scale pilot unit for converting ammonia into hydrogen, marking a key technological milestone in the global low-carbon hydrogen supply chain.
Ohmium reached an iridium utilisation rate of 18 GW/ton for its electrolyzers, significantly surpassing the 2030 target, through technological advances that lower hydrogen production costs.
The European Commission opens its first call for hydrogen suppliers with a new matchmaking platform aimed at facilitating investment decisions in the sector.
Ballard Power Systems reports a significant increase in revenue and reduced losses, supported by deep restructuring and positive developments in its main commercial segments.
The inclusion of hydrogen in China’s 15th Five-Year Plan confirms a public investment strategy focused on cost reduction, domestic demand stimulation and geo-economic influence across global markets.
EDF power solutions has inaugurated a hydrogen pilot plant at the Norte Fluminense thermal power plant, with an investment of BRL4.5mn ($882,000), as part of Aneel's R&D programme.
Plug Power plans to generate $275mn by divesting assets and reallocating investments to the data center market, as part of a strategy focused on returns and financial discipline.
GreenH launches construction of three green hydrogen projects in Bodø, Kristiansund and Slagentangen, backed by NOK391mn ($35.86mn) in public funding, aiming to strengthen decarbonised maritime supply along Norway’s coast.
Nel ASA becomes technology provider for the Enova-supported hydrogen sites in Kristiansund and Slagentangen, with a combined minimum capacity of 20 MW.
French hydrogen producer Lhyfe has signed an agreement to supply 90 tonnes of RFNBO-certified hydrogen to a private fuel station operator in Germany for a fleet of buses.
Loblaw and FortisBC are trialling a hydrogen-powered heavy truck between Vancouver and Squamish, marking a step in the integration of low-emission solutions in Canada’s grocery logistics.
Next Hydrogen announces a private equity placement of CAD$20mn to CAD$30mn ($14.55mn to $21.83mn), led by Smoothwater Capital, to accelerate the commercialisation of its electrolyzers and support its industrial growth.
Transition Industries signed a long-term purchase agreement with Mitsubishi Gas Chemical for the annual supply of 1mn tonnes of ultra-low carbon methanol starting in 2029, from its Pacifico Mexinol project in Mexico.
Norwegian group Nel ASA has received a firm order worth over $50mn to supply its PEM electrolysers for two green hydrogen production units in Florø and Eigersund.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.