Low carbon steel will be produced in Ontario, Canada, after the federal government made an investment in Algoma Steel; Canada’s only fully integrated producer of steel plates. The company is headquartered in in Sault Ste. Marie, Ontario.
Firstly, Algoma Steel is the prime leader in the steel manufacturing sector; it employs approximately 2,600 Canadians. The investment was for around $420 million; $200 million of which came out from the Strategic Innovation Fund’s Net Zero Accelerator initiative; and $220 million from the Canada Infrastructure Bank.
Secondly, the total cost of the low carbon steel in Algoma will be of $703 million. The project will phase out coal-fired steelmaking processes at the company’s facility in Sault Ste. Marie, Ontario; and will replace them with electricity-based manufacturing processes.
Thirdly, the company will purchase electric-arc furnaces; which are furnaces that heat materials though an electric arc; this electricity-based process would cut greenhouse gas (GHG) emissions by more than 3 million metric tonnes per year by 2030.
Moreover, this would be equivalent to taking more than 900,000 passenger vehicles off the road; almost the number of passenger vehicles in Toronto; according to the statement. The furnaces will also be powered by low carbon electricity.
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Low carbon steel to play a role in Canada’s climate goals
In addition, the investment is also intended to create 500 well-paying jobs, through the project’s construction phase and subcontracting; and will also create over 600 new co-op placements for students.
Furthermore, 75 employees at Algoma will receive training for high-skilled jobs in the science; technology, engineering, and also mathematics (STEM) fields.
On the other hand, about the relevance of the project, Michael McQuade, Algoma Steel CEO, said. “The 70% of carbon reduction resulting from Algoma’s proposed low carbon steel transformation represents one of the lowest cost-per-ton opportunities to achieve large-scale sustainable GHG reductions in Canada.”
Finally, he also remarked. “The combination of an Electric-Arc Furnace with Ontario’s low carbon electricity will also give our customers and infrastructure investments a green steel advantage. We are indeed most grateful for the Government of Canada’s leadership on this front; and also for their commitment in support of Algoma’s low carbon steel transformation.”