Feds provide up to $420M to make Algoma Steel ‘greenest’ steel producer

SUDBURY —
With election buzz in the air, Prime Minister Justin Trudeau announced Monday the government will provide Algoma Steel in Sault Ste. Marie up to $420 million to become the “greenest” flat-rolled steel producer in Canada.

Trudeau was in the Sault to make the announcement, along with François Phillippe Champagne, the Minister of Innovation, Science and Industry.

The funding will help with Algoma Steel’s proposed transformation to electric arc furnace (EAF) steelmaking.

The money includes up to $200 million from the Innovation Science and Economic Development Canada’s Strategic Innovation Fund through the Net Zero Accelerator “to rapidly expedite decarbonization projects and accelerate Canada’s industrial transformation,” the federal government said in a news release.

“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 very good direct and indirect jobs in Sault Ste. Marie and the Province of Ontario, and ensure green steel products are available for inclusion in automobiles, consumer products, and renewed infrastructure that utilizes Algoma steel.”

The transformation could reduce Algoma’s carbon emissions by as much as 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,” the release said.

Michael McQuade, CEO of Algoma Steel said the funds will help lead Canada to a “net-zero” economy.

“And (it’s) so very important as we look to make our proposed transformation to EAF steelmaking a reality,” McQuade said in the release.

“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.”