Saudi Steel Market

Green Steel and Low-Carbon Construction in Saudi Arabia

What green or low-carbon steel means, how DRI-EAF and hydrogen reduce emissions, EPDs, Saudi Green Initiative, Mostadam ratings and how buyers can specify lower-carbon steel.

Saudi Steel Work Editorial Team · · 3 min read

Short answer: Green or low-carbon steel is steel produced with significantly lower greenhouse gas emissions per tonne, typically through scrap-based or DRI-based electric arc furnaces powered by low-carbon electricity, and potentially hydrogen-based reduction. Buyers in Saudi Arabia can specify lower-carbon steel by requesting Environmental Product Declarations (EPDs), recycled content data and emissions intensity, especially on projects pursuing green building ratings such as Mostadam or LEED.

Construction clients worldwide are paying attention to embodied carbon — the emissions from producing building materials. Steel is a major contributor, and lower-carbon options are emerging.

Where steel emissions come from

  • Blast furnace route (coal-based): highest emissions per tonne
  • DRI with natural gas + EAF: lower emissions; the dominant route in Saudi Arabia
  • Scrap-based EAF: lower still, depending on electricity source
  • Hydrogen DRI: potential for very low emissions with green hydrogen (hydrogen DRI explained)

Saudi context

  • The Saudi Green Initiative sets national climate ambitions, including a net-zero target for 2060
  • Saudi steelmaking's gas-based DRI-EAF model starts from a lower-emission base than coal-based production
  • Green building ratings, including the national Mostadam system and international schemes such as LEED, reward lower-impact materials and documentation

How buyers can specify lower-carbon steel

  1. Request EPDs for steel products (sections, rebar, plate)
  2. Ask for emissions intensity (kg CO₂e per tonne) and methodology
  3. Ask for recycled content
  4. Optimise design — lighter structures using higher-strength steel reduce tonnage (S275 vs S355)
  5. Reduce waste (reducing steel waste)
  6. Plan for reuse and recycling at end of life

Export implications

Carbon reporting is increasingly linked to trade. The EU's carbon border mechanism affects steel exports to Europe (EU CBAM and Saudi steel).

Be cautious with claims

"Green steel" has no single legal definition. Ask for verified data rather than marketing terms, and compare on the same methodology.

Want to discuss lower-carbon options for your project? Contact us.

Frequently asked questions

What is an EPD?
An Environmental Product Declaration is an independently verified document reporting a product's life-cycle environmental impacts, including global warming potential per tonne.
Is steel recyclable?
Yes. Steel can be recycled repeatedly without losing its properties, and scrap is a major input to electric arc furnaces.

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