The Government of Canada has committed up to CAD420mn ($340.9mn) in funding to transform Algoma Steel into a green flat-rolled steel producer. The funding will facilitate building an electric arc furnace to enhance Algoma earnings and reduce its carbon footprint by around 70pc.
The funding includes up to CAD200 million from Canada’s Strategic Innovation Fund (SIF) for rapid decarbonization projects under the Net Zero Accelerator scheme. Algoma will also receive CAD220mn from the Canada Infrastructure Bank for the project over a four-year period.
Through this project, Canada aims to ensure the availability of green steel for its automobiles, consumer products, and infrastructure industries, besides achieving net-zero emissions by 2050. While Algoma’s proposed EAF-based steel making could reduce its carbon emissions by around 70pc and make it the lowest-cost-per-tonne greenhouse gas (GHG) reduction in Canada. Also, Algoma will become the greenest flat steelmakers in Canada.
In February, Algoma commissioned a 2.1mn mt No. 2 Ladle Metallurgy Furnace as part of its transformation project.