Algoma Steel’s proposed transformation to electric arc furnace steelmaking (EAF), can count on $420 million in federal funding.
The financial commitment includes up to $200 million from the Innovation Science and Economic Development Canada’s Strategic Innovation Fund through the Net Zero Accelerator.
Under an investment agreement in principle, the Canada Infrastructure Bank is committing a further $220 million towards the project. The funding will be provided over four years and will support thousands of jobs in Sault Ste. Marie and Ontario.
“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,” said Michael McQuade, CEO, Algoma Steel. “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.”
Algoma Steel’s proposed EAF transformation has the potential to reduce Algoma Steel’s carbon emissions by approximately 70 per cent, 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, according to the company.
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