Modon Holding (ADX:MODON) has achieved a significant breakthrough by becoming the first real estate developer in the United Arab Emirates to incorporate low-carbon steel in its projects, culminating in a strategic alliance with Emsteel Building Materials (ADX:EMSTEEL). This memorandum of understanding represents a pivotal moment in the construction industry, promoting sustainability and decarbonization efforts.
By forming this alliance, Modon and Emsteel, the largest producer of steel and building materials in the UAE, aim to enhance environmental responsibility within the construction sector. The initiative is focused on minimizing the industry's ecological footprint, symbolizing a concerted effort towards green construction practices. The collaborative project intends to implement green steel produced using certified renewable hydrogen throughout the regional construction value chain.
The green steel will be sourced from Emsteel and Abu Dhabi Future Energy Co, operating as Masdar, which is launching a green hydrogen pilot project that is unprecedented in the Middle East and North Africa region. “Integrating green steel into our projects is a crucial step towards reducing our carbon footprint and advancing the UAE's green objectives.
This partnership reflects our commitment to developing vibrant and sustainable communities that meet the UAE's net-zero 2050 strategy,” stated Ibrahim Al Maghribi, Chief Executive Officer of Modon Real Estate. The partnership aligns with the UAE's goal of achieving net zero emissions by 2050, underlining the nation's dedication to incorporating clean energy into its energy mix.
As the real estate sector increasingly prioritizes sustainable building practices, this initiative reinforces efforts to meet the country’s green building standards. Saeed Alghafri, CEO of Emirates Steel, expressed, “As the first steelmaker in the world to capture its CO2 emissions and the MENA region's trailblazer in showcasing green hydrogen for green steel production, we are confident that our collaboration with Modon will play a vital role in advancing our decarbonization initiatives on a larger scale.” In afternoon trading, Modon shares increased by 1%, while Emsteel saw a slight decline of nearly 1%..