Algoma Steel moving ahead with electric steel furnace transition

Sault Ste. Marie -

Algoma Steel is thanking the province for its support as the steelmaker transitions from blast-furnace steel making to electric arc furnaces.

The move comes after an announcement earlier this year by the federal government of funding to help the steel plant with a $700 million construction of two electric arc furnaces.

Algoma Steel's board of directors gave final approval to the investment, and work will now begin on transitioning the steel manufacturer to electrified steel making.

"Electricity is a significant component, and so the province is an integral partner in terms of the electricity infrastructure, as well as the operating parametres under which we have," said Algoma Steel CEO Michael McQuade.

"Algoma Steel is doing something transformational in Sault Ste. Marie and in northern Ontario and in the Province of Ontario that is going to ensure that steel production here is going to continue and to support another generation of steelworkers moving forward," said Sault Ste. Marie Progressive Conservative MPP Ross Romano.

Sault Ste. Marie's electricity utility, PUC, will play a big part in the steel plant's transition as the company will require a significant amount of power to run the new furnaces. The president of the PUC, Rob Brewer, said the utility will be constructing a new power line for that purpose.

"We really applaud Algoma for, first of all, taking the leadership to make this kind of investment and make the transformation that they are in terms of what it provides in benefits to the community, but to also work with the community's utility to make sure that that investment stays local," said Brewer.

Sault Ste. Marie Mayor Christian Provenzano agrees.

"This is an opportunity to generate some revenue that will be returned to the community and that will help the community greatly," Provenzano said.

"I want to commend the PUC for being involved in the project. I think it’s great the PUC is going to be working on the transmission assets and really a win-win for both the company, the PUC and the community at large."

With all approvals now in place, Algoma Steel said the new electric arc steel-making furnaces will be finished sometime in 2024. The provincial government, meantime, said the switch will help Ontario meet its target of a 30 per cent reduction in emissions by 2030.