Algoma Steel Retrofit

Sector(s)
Green Infrastructure
Location(s)
Sault Ste. Marie, Ontario
Participation
$220 million (financial close)
Partner(s)
Algoma Steel Inc.

Large-scale retrofit to significantly reduce greenhouse gas emissions

Algoma is electrifying its steelmaking process by installing electric arc furnaces (EAFs).

Fast facts

Greenhouse gas reduction equivalent to 900K passenger vehicles off the road
Fulfills Algoma's Green Steel Transformation Plan
Reduces production costs
Sustains the regional steelmaking economy

Algoma Steel Inc. is a privately owned steel manufacturer located in Sault Ste. Marie, Ontario. The company maintains raw steel production capacity of approximately 4 million tonnes per year from two blast furnaces. Algoma manufactures steel sheets and serves automotive, construction, infrastructure, energy and defence customers throughout North America.

Algoma’s blast furnace production equipment is approaching the end of its life and requires capital investments. Algoma is electrifying its steelmaking process by installing electric arc furnaces (EAFs) to improve product mix and reduce production costs and reduces the environmental footprint associated environmental compliance cost. This process is expected to reduce Algoma’s greenhouse gas emissions (GHG) by more than 70 per cent, the equivalent of taking more than 900,000 passenger vehicles off the road.

Benefits of CIB involvment

The Algoma Steel project has one of the highest potential GHG reduction benefits in CIB's portfolio. The project investment supports economic development in the Sault Ste. Marie region and helps sustain the regional steelmaking economy. Our investment will also allow Algoma to compete with other producers across North America.

Learn more

Algoma Steel Inc.

The 70 per cent carbon reduction resulting from Algoma’s proposed transformation to Electric-Arc Furnace technology represents one of the lowest cost-per-tonne opportunities to achieve large-scale sustainable GHG reductions in Canada. The world can’t get to net-zero without steel. The combination of an Electric-Arc Furnace with Ontario’s low carbon electricity will give our customers and infrastructure investments a green steel advantage. 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.

Michael McQuade, Chief Executive Officer