Canada Supports Algoma Steel’s Transformation Plan for Green Steel
Canadian steel maker Algoma Steel Inc’s potential to become the greenest flat-rolled steel producer in Canada marked another significant milestone with the Government of Canada’s commitment of up to CAD 420 million in financial support. Canada’s Prime Minister Mr Justin Trudeau was on site along with Canada’s Minister of Innovation, Science and Industry Mr François Phillippe Champagne to make the announcement to facilitate Algoma Steel’s proposed transformation to electric arc furnace steelmaking. The financial commitment includes up to CAD 200 million from the Innovation Science and Economic Development Canada’s Strategic Innovation Fund through the Net Zero Accelerator to rapidly expedite decarbonization projects and accelerate Canada’s industrial transformation. Under an investment agreement in principle, the Canada Infrastructure Bank is committing a further CAD 220 million towards the project. The funding will be provided over four years and will support thousands of very good direct and indirect jobs in Sault Ste Marie
Algoma Steel’s proposed EAF transformation has the potential to reduce Algoma Steel’s carbon emissions by approximately 70%, making the project among the lowest-cost-per-tonne of GHG reduction in Canada. When combined with Ontario’s low-carbon power, Algoma Steel will be positioned as the greenest producer of flat-rolled steel in Canada, and among the greenest in North America.
Algoma Steel Chief Executive Officer Mr Michael McQuade said “We were honoured to host Prime Minister Trudeau and Minister Champagne today and we took to the opportunity to showcase our new No. 2 Ladle Metallurgy Furnace, another significant milestone in Algoma Steel’s transformation journey which we commissioned this past February. The momentum is building on our path to our enhanced sustainability, with the promise of good secure jobs and a greener future for our community and our customers.”
The Canadian Steel Producers Association welcomed the government support. Canadian Steel Producers Association President and CEO Ms Catherine Cobden said “Today’s announcement is a significant step forward in achieving Canada’s greenhouse gas emissions target while ensuring a strong and sustainable steel operation in Sault Ste Marie. It is also an important illustration of the partnership envisioned through the CSPA’s Climate Call to Action and is an indication that the government is a supportive partner in the Canadian steel industry’s climate plan.”