Emirates Steel Arkan, AD Ports Group, Itochu Corporation, and JFE Steel have inked a non-binding Memorandum of Understanding (MoU) to collaborate on the development of an integrated low-carbon iron supply chain complex in Abu Dhabi.
The complex aims to produce environmentally friendly raw materials for steelmaking, including Hot Briquetted Iron (HBI). By doing so, it will enable Emirates Steel Arkan to cater to the increasing demand for sustainable steel products while bolstering the UAE’s efforts towards a sustainable industrial ecosystem.
Under the MoU, the parties will establish a joint framework for collaboration concerning logistics and digital supply chain requirements for the new low-carbon iron supply chain.
AD Ports Group will play a vital role by providing the land in KEZAD Musaffah for the new plant and offering maritime/logistics services for the supply of iron ore to the plant and the export of low-carbon emission raw materials worldwide. Additionally, AD Ports Group may offer a jetty for the receipt of iron ore and dispatch of steel products under a build own and operate basis.
The envisioned project will be constructed in several phases and encompass pellet plants, direct reduction plants, smelter furnaces, and other relevant infrastructure. The project plan is keen to capitalize on Emirates Steel Arkan’s expertise in decarbonization and leverage clean and green energy sources, such as solar and hydrogen.
