Abu Dhabi: EMSTEEL Group has announced a strategic partnership with Yellow Door Energy, the largest sustainable energy partner for businesses in the Middle East and Africa, to develop the largest industrial solar PV rooftop project in the UAE. The 31.5-megawatt-peak (MWp) solar power project will power EMSTEEL's facilities with renewable energy, reinforcing the Group's commitment to pioneering self-generating energy sources for sustainable manufacturing in the region.
According to Emirates News Agency, this strategic initiative is a key part of EMSTEEL's decarbonisation strategy implementation and aligns with the UAE's Net Zero by 2050 commitment. Under the agreement, Yellow Door Energy will finance, build, own, operate, and maintain solar panel installations across 40 EMSTEEL roofs in ICAD 1, Abu Dhabi. The project will comprise rooftop and carport solar installations, including high-efficiency solar panels, with bifacial panels used for carports to optimise clean energy generation.
Upon completion, the project is expected to generate approximately 50 million kilowatt-hours (kWh) of clean electricity annually, offsetting approximately 16,000 metric tonnes of CO2 emissions from the scope 2 emissions per year over the next 25 years. The 100 percent self-consumed renewable electricity will directly reduce energy costs and carbon footprint, furthering EMSTEEL's commitment to operational efficiency and decarbonisation.
Saeed Ghumran Saeed Al Remeithi, Group CEO of EMSTEEL, expressed that sustainability is central to EMSTEEL's strategy, and the advancement of decarbonisation efforts is a priority as they shape the future of sustainable manufacturing. The partnership with Yellow Door Energy is seen as a significant step in implementing their decarbonisation strategy by expanding the use of renewable energy across their operations. By integrating on-site solar power, EMSTEEL aims to reinforce its leadership in industrial sustainability, contributing to the UAE's Net Zero by 2050 vision, and setting new benchmarks for renewable energy adoption in the UAE's steel industry.
Jeremy Crane, Group CEO of Yellow Door Energy, highlighted that with a total capacity of 31.5 MWp, the project demonstrates the potential for solar to power primary industries in the UAE. Yellow Door Energy, as a UAE-founded company, is committed to helping businesses reduce energy costs and decarbonise their operations.
Construction of the project is set to commence in 2025, with commissioning targeted for 2026. Yellow Door Energy will oversee the end-to-end development, ensuring seamless execution while eliminating upfront investment for EMSTEEL. This solar lease model enables EMSTEEL to enjoy the benefits of clean energy without operational risk, allowing the company to focus on its core business while advancing its sustainability objectives.
As part of the overall Group's decarbonisation strategy, EMSTEEL aims to achieve a 40 percent reduction in absolute greenhouse gas (GHG) emissions in its Steel Business Unit and a 30 percent reduction in its Cement Business Unit by 2030, using 2019 as the baseline year, with the ultimate goal of reaching net-zero emissions by 2050.