Algoma to construct EAFs to replace blast furnace steelmaking by 2024

Algoma Steel will construct two electric arc furnaces to replace its existing blast furnace and basic oxygen steelmaking operations in Ontario by 2024, a move that will increase its overall raw steel capacity and lower its carbon emissions, the company said Nov. 11.

The transition to EAF steelmaking in Ontario will increase Algoma's raw steel production to 3.7 million st from 2.8 million st and reduce its carbon emissions by about 70%, it said in a statement.

"Once complete, [the transition] is projected to deliver three million tonnes of annual CO2 reduction, placing the project among the highest impact investments in greenhouse gas reduction in Canada," CEO Michael McQuade said. "You cannot get to net zero [carbon emissions] without steel, and in becoming a leading provider of green steel in North America, Algoma intends to be part of the solution."

Algoma said the increased raw steel production will match its current downstream finishing capacity. The new facilities will also include new vacuum degassing capability to expand its offering of steel plate grades, the Ontario-based company added.

The steelmaker said it will invest about C$700 million ($555.8 million) in the project that will be funded with previously announced financing commitments and the proceeds related to its recent merger with Legato Merger.

Once the EAFs come online in 2024, Algoma said it expects to gradually transition away from its blast furnace steelmaking as more electric power on the grid supplying its operations becomes available.