Arabian Gulf Steel Industries (AGSI), a leader in sustainable steel manufacturing, has announced that it has become The First Net Zero Steel Manufacturing Plant in the MENA region and first in the world to achieve Carbon Neutrality.
This remarkable achievement was recognized and announced by His Excellency Dr. Sultan Al Jaber at The Make It In The Emirates (MIITE) event in Abu Dhabi on the 27 May 2024.
Producing Net Zero Steel and achieving carbon neutrality represent major milestones in AGSI’s commitment to environmental stewardship and sustainable manufacturing. This makes our company a pioneer in the field and a pre-eminent contributor to the UAE’s Net Zero Vision and Circular Economy.
The announcement of AGSI Net Zero Steel Manufacturing Facility during the MIITE was made in a presence of H.E. Dr. Sultan Al Jaber, The Minister of Industry and Advanced Technology,
H.E. Sara Al Amiri, The Minister of State for Advanced Technology of The United Arab Emirates, and H.E. Dr. Amna bint Abdullah Al Dahak, The Minister of Climate Change and Environment, as well as AGSI’s CEO.
AGSI is the largest steel recycler in the UAE with a facility to manufacture 600,000 Metric Tons (MT) of steel billets per annum entirely from steel scrap sourced 100% locally.
“We continue to take accelerated steps towards a greener future with state-of the-art technology, and sustainable steel manufacturing operations”, said Asam Hussain, AGSI CEO.
The Carbon Neutrality verification statement received for 2023 complements AGSI’s achievement of the Net Zero Certification for 2023. Both certifications were verified by a global leading external auditor, DNV. These achievements underscore our commitment to sustainability and our position as a leader in decarbonization of the hard-to-abate sector in the UAE and globally.
Located in the heart of the industrial area of Abu Dhabi, UAE, AGSI is set to accelerate the UAE’s journey to the Net Zero target by 2050. The company has been investing in decarbonization strategies and taking steps to deliver on its sustainability commitment and has raised its ambition to commit to the science-based emissions reductions in line with 1.5C pathway.
“As we advance our commitment to ESG, we reflect on our dedication to making a lasting impact on the steel industry and contributing to the transformative journey towards ethical practices and carbon neutrality”, said Mr. Hussain. He continued, “Our Net Zero Steel Plant is a statement of our dedication to environmental stewardship that propels the vision of the UAE to be a Green Steel Hub of the region and promote sustainable manufacturing practices”.
Net Zero Steel Plan Journey and Sector Decarbonization
In 2022, AGSI’s Abu Dhabi Steel Plant was certified at 0.14tCO2e/tcs and since then the company has been working on further decarbonization strategies to further lower its emissions. In 2023, the company achieved 30% improvement in reducing its carbon emissions across the facility, with reductions as high as 58% in scope 1 and 27% in scope 2.
The reduction in carbon emissions were a result of multiple initiatives, including sustainable operations excellence, investing in automation and migration from fossil fuel-based machinery to electrically powered ones, while investing in technology and training the people.
AGSI’s continuous decarbonization efforts and broader commitment to Environmental, Social, Governance (ESG) agenda, are at the heart of the company’s corporate strategy. In addition, the focus on People Sustainability and pioneering green skills agenda is at the heart of the company’s strategy.
The reuse and recycling of the end-of-life UAE’s steel by AGSI to produce new steel for the local construction and infrastructure projects extends the life of steel materials reducing the GHG emissions, which would otherwise be generated if new steel was produced in the conventional way.
AGSI’s roadmap to Net Zero across the entire value chain is setting the standard for heavy industry in the region. This roadmap gives impetus to the transition of the hard- to-abate sectors aligning with global decarbonization targets.
AGSI’s achievement of carbon neutrality and Net Zero Steel Manufacturing in Abu Dhabi is paramount to supporting the UAE in its vision of a Net Zero economy by 2050, Circular Economy, In-Country Value, as well as committing to the Sustainable Development Goals, and creating prosperous communities.
“We are delighted to say that our steel production process is GHG free and paves the way for a more sustainable future”, said Mr. Hussain.
These remarkable achievements would not have been possible without the visionary leadership of AGSI that has been a driving force behind its sustainability initiatives, ensuring that the company set ambitious targets to create a greener future.
The entire AGSI team have shown that together the new standards for the industry can be set and demonstrated that sustainable practices are not only essential for achieving the Net Zero Vision but also possible to accelerate.