Algoma Steel report updates progress toward becoming a ‘green’ steelmaker

Tuesday afternoon, Sault-based Algoma Steel issued its first environmental, social and governance (ESG) report outlining the progress the company has made in key areas.

CEO Michael Garcia said in a news release that the scale of change underway at Algoma means the company has a rare opportunity to change the way it operates.

“The scale and magnitude of the transformation underway at Algoma necessitate that ESG factors play a foundational and critical role in our business strategy, processes and practices,” Garcia said.

“Becoming a North American leader in green steel, means becoming a leader in ESG – and the work underway at Algoma today is designed to help us achieve both goals.”

Moving into a “new era of low carbon steel” is a key part of Canada’s commitment under the Paris Agreement, he said.

“Informed by our stakeholders and aligned with global reporting best practices, our inaugural ESG report further expands our disclosure on the progress we have made – and the work we still need to do – in our transformation to green steel,” Garcia said.

“We look forward to building on the benchmarks established in our first report and creating shared and sustainable value for all our stakeholders including investors, employees, and Indigenous communities, while ensuring robust and effective governance and oversight.”

 

A reaction set off when molten metal made contact with moisture this week sent five workers at Algoma Steel to hospital. (File)

Construction of Algoma’s electric arc furnace steelmaking project began in 2021, and Algoma expects to begin commissioning by the end of 2024.

Once complete, the company said the transformation will improve Algoma’s product mix, reduce fixed costs, provide significant carbon tax savings and increase production capacity to 3.7 million tons a year of liquid steel capacity.

It will also “reduce carbon emissions by up to 70 per cent and significantly shrink Algoma’s environmental footprint with improvements to air, water, waste and noise,” the news release said.

“While building the facility, the project will create approximately 500 new construction jobs.”

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Based in Sault Ste. Marie, Algoma Steel produces hot and cold rolled steel products, including sheet and plate. Algoma is a key supplier of steel products to customers in North America and is the only producer of discrete plate products in Canada.

The full ESG report can be found on the company’s website.