Emirates Steel Arkan, AD Ports Group, ITOCHU & JFE Steel Sign MoU Aimed at Low-Carbon Iron Supply Chain

Emirates Steel Arkan, AD Ports Group, one of the world’s premier facilitators of logistics, industry, and trade, ITOCHU Corporation and JFE Steel have signed a non-binding MoU to establish an integrated low-carbon iron supply chain complex in Abu Dhabi.

The MoU was exchanged during the UAE-Japan Business Forum in Abu Dhabi in the presence of Japanese Prime Minister Fumio Kishida and H.H. Sheikh Hamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council.

The complex, a first of its kind in Abu Dhabi, aims to produce low carbon emission raw materials for use in steelmaking; this would include materials such as Hot Briquetted Iron (HBI) and Low Carbon Emission Iron, further enabling Emirates Steel Arkan to capture and meet the growing demand for environmentally friendly steel products.

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As part of the MoU, the parties will develop a joint framework for collaboration related to the logistics and digital supply chain requirements for the new low-carbon iron supply chain as well as share information and expertise on industry best practices.

AD Ports Group will be responsible for providing the land for new plant in KEZAD Musaffah, as well as offering maritime/logistics services for the supply of Iron Ore to new plant and the export of low-carbon emission raw materials around the world.

The Group may also provide a jetty for the receipt of Iron Ore and dispatch of steel products on a Build Own and Operate (BOO) basis.

The new project is envisioned to be constructed over several phases and include pellet plants, direct reduction plants, smelter furnaces and other relevant infrastructure.

The project plan also aims to benefit from Emirates Steel Arkan’s extensive decarbonization expertise and utilize clean and green energy sources including solar and hydrogen.

Eng. Saeed Ghumran Al Remeithi, Group CEO, said, “Our collaborative efforts bring together diverse stakeholders, like AD Ports Group, to collectively work towards the common goal of contributing to achieving the UAE Net-Zero 2050 strategic initiative, and this complex serves as a testament to our commitment to sustainable progress.”

Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said, “Through this collaboration, AD Ports Group will leverage our significant expertise in the logistics industry sector, as well as our diverse maritime services, to establish an advanced integrated low-carbon steel production complex.

"This ground-breaking initiative will not only meet the growing demand for environmentally friendly steel products, but also strengthen the UAE's position as a global leader in sustainable steel production and a driving force behind decarbonization."

Keita Ishii, President & COO of ITOCHU Corporation, said, “We are also proud to be a part of this exciting project with established UAE partners, to pursue joint goal of decarbonization.

"The target 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”.

Yoshihisa Kitano, President and CEO of JFE Steel Corporation, said: “By achieving this project which also assumes the installation of CCUS, not only we can contribute to the UAE’s energy transition policies but we would also be able to contribute in de-carbonization of the Japanese Steel Industry through securing stable supply of low-carbon materials.”

Recently, Emirates Steel Arkan also signed a MoU with the Abu Dhabi Department of Economic Development (ADDED) and ITOCHU Corporation to pursue studies focused on the establishment of an integrated steel production complex in Abu Dhabi.

The MoU aims to establish a low emissions iron production complex in Abu Dhabi that will play a significant role in the global supply chain for low-carbon iron, drive sustainable growth in the country’s low-carbon iron supply chain and contribute towards achieving the UAE Net-Zero 2050 strategic initiative.

Read More: Sustainability Integrated to All Segments of Operation: AD Ports Group