Big Funding For Algoma Steel To Retrofit Operations And Phase Out Use Of Coal

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Inside the Algoma Steel plant. Picture: Algoma Steel Inc

Sault Ste. Marie: Prime Minister, Justin Trudeau on Monday announced that Algoma Steel Inc. will receive up to $420 million to retrofit their operations and phase out coal-fired steelmaking processes at their facility in Sault Ste. Marie, Ontario.

This funding will enable the company to purchase state-ofthe-art equipment to support its transition to Electric-Arc Furnace production.

This electricity-based process is expected to cut greenhouse gas (GHG) emissions by more than 3 million metric tonnes per year by 2030, making a meaningful contribution to achieving Canada’s climate goals.

This is equivalent to taking more than 900,000 passenger vehicles off the road – almost the number of passenger vehicles in Toronto. The investment will create 500 well-paying jobs, through the project’s construction phase and subcontracting, and will create over 600 new co-op placements for students.

Additionally, 75 employees at Algoma will be trained for high-skilled jobs in the science, technology, engineering, and mathematics (STEM) fields.

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.”

Francois-Philippe Champagne, Minister of Innovation, Science and Industry, said: “We are proud to support companies like Algoma Steel Inc. that are seizing the opportunities to lead in the low carbon economy. Today’s investment will ensure that one of Canada’s largest steel producers will play a key part in Canada’s economic recovery and make significant progress towards our climate targets.”

“Catherine McKenna, Minister of Infrastructure and Communities, said: “We need to make sure we have the cleanest manufacturing in the world. The Canada Infrastructure Bank’s support to help Algoma Steel decarbonize steelmaking is good for Canadian jobs and the economy and critical to tackling climate change.”

“This project, when fully executed, will significantly reduce greenhouse gases, strengthen the competitiveness of the Canadian steel industry, and solidify local economic growth potential. This retrofit of industrial infrastructure is an example of the Canada Infrastructure Bank’s $10B Growth Plan in action.

Ehren Cory, Chief Executive Officer, Canada Infrastructure Bank Michael McQuade, Chief Executive Officer, Algoma Steel Inc., said: “The 70 per cent carbon reduction resulting from Algoma’s proposed transformation to Electric-Arc Furnace technology represents one of the lowest cost-per-tonne opportunities to achieve large-scale sustainable GHG reductions in Canada. ”

• Headquartered in Sault Ste. Marie, Ontario, Algoma Steel Inc. employs approximately 2,600 Canadians and is Canada’s only fully integrated producer of steel plates, making it a leader in the production of hot- and coldrolled steel sheet, strip, and plate.

• As part of this investment of up to $420 million, Algoma Steel will receive up to $200 million from the Strategic Innovation Fund’s Net Zero Accelerator initiative and $220 million from the Canada Infrastructure Bank. The total cost of Algoma’s project is $703 million.

• The Canada Infrastructure Bank (CIB) is investing $35 billion, and partnering with private and institutional investors as well as other levels of government and Indigenous communities, to support new revenue-generating infrastructure projects, support economic growth, and take action on climate change.

• Th e steel industry currently accounts for 7 per cent of global GHG emissions from the energy industries – equal to global aviation, shipping, and chemicals emissions combined.

• In 2019, the Canadian steel industry employed over 25,000 workers and contributed $3.8 billion to Canada’s gross domestic product. 

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