EMSTEEL Group, one of the largest publicly traded steel and building materials manufacturers in Abu Dhabi, has announced a strategic partnership with Yellow Door Energy, one of the largest sustainable energy partners for businesses in the Middle East and Africa (MEA), to develop one of the largest industrial solar PV rooftop projects 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.
Upon completion, the project is expected to generate approximately 50 million kilowatt-hours (kWh) of clean electricity annually, offsetting approximately 16,000 metric tons of CO₂ emissions from our scope 2 emissions per year over the next 25 years. The 100% self-consumed renewable electricity will directly reduce energy costs and carbon footprint, furthering EMSTEEL’s commitment to operational efficiency and decarbonization.
This strategic initiative is a key part of EMSTEEL’s decarbonization 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 optimize clean energy generation.
As part of the overall Group’s decarbonization strategy, the company aims to achieve a 40% reduction in absolute greenhouse gas (GHG) emissions in its Steel Business Unit and a 30% 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.
Engineer Saeed Ghumran Saeed Al Remeithi, Group CEO – EMSTEEL, stated: “Sustainability is at the core of EMSTEEL’s strategy, and advancing our decarbonization efforts is a key priority as we shape the future of sustainable manufacturing. This partnership with Yellow Door Energy marks an important step in implementing our recently published decarbonization strategy by expanding the use of renewable energy across our operations. By integrating on-site solar power, we are reinforcing our 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 – Yellow Door Energy, added: “We are proud to partner with EMSTEEL on this solar lease agreement, enabling them to transition to clean energy while achieving significant cost savings. With a total capacity of 31.5 MWp, this project demonstrates the potential for solar to power our primary industries in the UAE. As a UAE-founded company, Yellow Door Energy remains committed to helping businesses reduce energy costs and decarbonize their operations.”
Construction 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.
For more news:
Mark J.S. Tonkens Onboarded As New GCFO At Emirates Steel Arkan
Bank ABC signs agreement to fund Majid Al Futtaim solar power projects
