UAE-based Emirates Steel Arkan and Japan’s Itochu Corporation, along with JFE Steel Corporation, expect to reach a financial investment decision for a project to develop a ferrous raw material production facility in Abu Dhabi sometime next year.
JFE Steel Corporation will serve as both offtaker and joint venture partner for the low-carbon iron supply chain project, according to Kenji Otsuka, CEO of Itochu Middle East.
MEED reported in September 2022 that Emirates Steel Arkan and the two Japanese companies would conduct a feasibility study for the project together.
The project is integral to a global low-carbon emission iron supply chain and will help meet the growing demand for green steel, Emirates Steel Arkan said at the time.
As part of the initial plan, high-grade iron ore will be imported into Abu Dhabi to produce the ferrous raw material. This is expected to begin in the second half of 2025.
The ferrous raw material will initially be produced through an enhanced decarbonised process using natural gas to reduce the iron ore.
The project also makes provisions for the adoption of renewable energy power sources as well as green hydrogen for the reduction process.
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