The Government of Canada has approved up to CAD$420 million (£245m) in funding to support Algoma Steel in becoming the “greenest” flat-rolled steel producer in the country.
Prime Minister Justin Trudeau announced the four-year funding to enable the company to retrofit its operations and phase out coal-fired steelmaking processes at its facility in Sault Ste. Marie, Ontario.
The financial support will facilitate Algoma Steel’s proposed transition to electric arc furnace (EAF) steelmaking and help create thousands of direct and indirect jobs in Sault Ste. Marie and the province of Ontario.
The proposed EAF transformation is expected to reduce carbon emissions by around 70% – equivalent to more than three million metric tonnes per year by 2030 – making the project among the lowest-cost-per-tonne of greenhouse gas reduction in Canada.
Mr Trudeau said: “Investments in clean technology benefit the environment and our economy. Today’s announcement is great news for the people of Sault Ste. Marie. It will help Algoma Steel create good middle class jobs and cut pollution, while positioning Canada as a leader in cleaner and greener steelmaking.
“The government will continue to support Canadian businesses and workers as we accelerate our transition to a clean growth economy that leaves no one behind.”
Algoma Steel aims to ensure green steel products are available for inclusion in automobiles, consumer products and renewed infrastructure that uses Algoma Steel.
Michael McQuade, Algoma Steel Chief Executive Officer added: “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. 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.”