Emirates Global Aluminum (EGA), the largest industrial company in the UAE outside of oil and gas, has agreed to supply CelestiAL solar aluminum to Kobe Steel, a major Japanese steel manufacturer, to make automotive body sheets for Nissan.
The agreement with Kobe Steel will see the supply of EGA’s CelestiAL solar aluminum to one of the largest rolling mills in Japan. Automotive body sheet is used by the giant Japanese automaker to form vehicle body panels such as doors and bonnets.
EGA currently supplies thousands of tons of aluminum to Kobe Steel every year, in a business relationship that stretches back more than 25 years.
“EGA was the first company in the world to make aluminum using solar power, and we are proud that our CelestiAL metal will now be used in Nissan vehicles through Kobe Steel, as well as those of other leading global car companies. We look forward to increasing our production of CelestiAL over the years ahead, contributing to the decarbonization of EGA and end-user industries including auto manufacturing. I thank Kobe Steel for their continuing trust in EGA and our metal.”
EGA expects to vastly increase its production of CelestiAL through an initiative with Abu Dhabi National Energy Company (TAQA), Dubal Holding, and Emirates Water and Electricity Company (EWEC), to divest its electricity generation assets and instead source power from the grid, including an increasing proportion of clean energy.
The new steady power demand from EGA would increase the predictability of the overall power system, and advance EWEC’s development of new solar energy projects. The scale of the expansion is expected to be greater than the current total installed solar generation capacity in the UAE and EGA would utilize this additional solar power once it is developed.
The use of solar power in producing EGA’s CelestiAL solar aluminum significantly reduces the emissions associated with aluminum smelting and provides an opportunity for end users to reduce their Scope 3 emissions.
The deal with Kobe Steel follows CelestiAL supply agreements with BMW Group and Mercedes-Benz parts-maker Hammerer Aluminum Industries.