Algoma reaches milestone on EAF facility
Algoma Steel Group Inc. announced on February 16 that it had installed the first structural steel columns this week at its electric arc steelmaking facility (EAF) in Sault Ste. Marie.
The EAF project, which was announced in the summer of 2021, is the largest industrial-scale carbon reduction project in Canada.
The electricity-based process is expected to cut emissions by more than 3 million metric tonnes per year by 2030. That’s the equivalent of taking more than 900,000 passenger vehicles off the road.
Valued at more than $700 million, the project is being funded in part by a $420-million investment from the Government of Canada.
Algoma Steel partnered with Hamilton-based Walters Group Inc. to fabricate and erect the main EAF building and ancillary structures, which include leading technology to reduce sound and emissions.
Walters is using Algoma’s steel plate products in the fabrication of the heavy structural components, and working with local industrial contractor, SIS Manufacturing Inc., for the fabrication of these key elements. Onsite assembly of the building structure is targeted for completion within the year.
Meanwhile, the contract for the electric arc furnace technology has been awarded to Italy’s Danieli. The two 250-ton electric furnaces will provide capacity to produce 3.7 million tons of liquid steel every year.
Ontario Premier Doug Ford visited the site to commemorate the project milestone.
“Given the significance of Algoma’s transition to Ontario’s carbon reduction goals, we were excited to celebrate this important milestone today,” said Algoma CEO Michael D. Garcia. “We are making incredible progress on the EAF project, which remains on time and on budget, and most importantly, the team is working safely. The level of excitement in the community and among our workforce is remarkable as we look to a greener future with an expected 70% reduction in greenhouse gas emissions. When paired with Ontario’s low-carbon power grid, we expect this transition will position Algoma as one of the leading producers of green steel in North America.”
Completion of the $703-million project is on track for mid-2024.
Globally, steel is a large contributor of greenhouse gases. The industry currently accounts for 7 percent of global GHG emissions from the energy industries – equal to global aviation, shipping and chemicals emissions combined.