Algoma Steel Inc., in Sault Ste. Marie, Ont., is getting up to $420 million in federal funding to help it phase out coal-fired steel-making processes.
During a news conference on Monday, Prime Minister Justin Trudeau announced the funding for the manufacturer to retrofit its operations to cleaner technology.
This will allow Algoma Steel to purchase equipment to support its transition to electric-arc furnace production. It’s expected to cut greenhouse gas emissions by more than three million metric tonnes a year by 2030, Trudeau said, the equivalent of removing 900,000 passenger vehicles off the road.
The federal government said the funding will also create 500 jobs during the project’s construction phase and through subcontracting.
“It will help Algoma Steel create good middle-class jobs and cut pollution, while positioning Canada as a leader in cleaner and greener steelmaking,” Trudeau said.
Michael McQuade, chief executive officer for Algoma Steel, said the 70 per cent carbon reduction from the new technology represents one of the lowest cost-per-tonne opportunities to achieve large-scale sustainable greenhouse gas reductions in the country.
“The world can’t get to net zero without steel,” he said.
“We are most grateful for the government of Canada’s leadership on this front and their commitment in support of Algoma Steel’s sustainability transformation.”
According to Ottawa, the steel industry accounts for seven per cent of global greenhouse gas emissions from the energy industries — equal to global aviation, shipping, and chemicals emissions combined.