Algoma gets C$420 million from Ottawa for cleaner steel-making technology
(Kitco News) - CBC reported today that Algoma Steel, a fully integrated steel producer anchored in Sault Ste. Marie, Ontario, is getting up to C$420 million in federal funding to help it phase out coal-fired steel-making processes.
During a news conference on Monday, Prime Minister Justin Trudeau announced the funding for the manufacturer to retrofit its operations to cleaner technology.
This will allow Algoma Steel to purchase equipment to support its transition to electric-arc furnace production. It's expected to cut greenhouse gas emissions by more than three million metric tonnes a year by 2030, Trudeau said, the equivalent of removing 900,000 passenger vehicles off the road.
Michael McQuade, chief executive officer for Algoma Steel, said the 70 per cent carbon reduction from the new technology represents one of the lowest cost-per-tonne opportunities to achieve large-scale sustainable greenhouse gas reductions in the country.
Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. With a current raw steel production capacity of an estimated 2.8 million tons per year, Algoma is a key supplier of steel products to customers in Canada and Midwest USA and is the only producer of plate steel products in Canada.