Canada commits financial support to Algoma's green steel plan

Canadian government has committed Canadian dollar (C$) 420 million to help Algoma Steel become the ‘greenest’ flat-rolled steel producer in Canada.

The commitment was made recently by country’s Prime Minister Justin Trudeau along with Minister of Innovation, Science and Industry, François Phillippe Champagne, who visited the company’s production site and made the announcement to facilitate Algoma Steel’s proposed transformation to electric arc furnace steelmaking (EAF).

“The financial commitment includes up to c$200 million from the Innovation Science and Economic Development Canada’s Strategic Innovation Fund (SIF) through the Net Zero Accelerator to rapidly expedite decarbonization projects and accelerate Canada’s industrial transformation,” the company said in a release.

Under an investment agreement in principle, the Canada Infrastructure Bank is committing c$220 million towards the project.

“The funding will be provided over four years and will support thousands of direct and indirect jobs in Sault Ste. Marie and the province of Ontario, and ensure green steel products are available for inclusion in automobiles, consumer products, and renewed infrastructure that utilizes Algoma steel,” the company said.

Algoma Steel’s proposed EAF transformation has the potential to reduce the company’s carbon emissions by approximately 70 percent, making the project among the lowest-cost-per-ton of GHG reduction in Canada.

“Having a commitment of this magnitude from the Government of Canada shows leadership towards a net-zero, climate-resilient Canada, and is so very important as we look to make our proposed transformation to EAF steelmaking a reality,” Algoma Steel Chief Executive Officer, Michael McQuade commented while showcasing the new No.2 Ladle Metallurgy Furnace to the ministers.

On February 22, 2021, Algoma Steel celebrated the first arc at its No.2 Ladle Metallurgy Furnace (No.2 LMF).