ArcelorMittal Dofasco getting $500M from Ontario to shift to clean steel making

UPDATED

Premier Doug Ford has announced ArcelorMittal Dofasco in Hamilton will receive $500 million to reduce carbon dioxide emissions by about three million tonnes annually.

The money will be in addition to the $400-million investment announced last year by the federal government to reduce carbon emissions at steelmaker’s facility.

The investments are part of a $1.8-billion project to convert the steel production process and phase out coal-fired steelmaking.

The project will eliminate coal and coke power in blast furnaces and convert them to electric.

The province says the carbon dioxide reduction will be equivalent to taking almost one million cars off the road.

“ArcelorMittal Dofasco Hamilton will be the first integrated steel mill in North America to transition off coal, and among the first in the world. This is a massive achievement for the province and for Canada; and will solidify Ontario as a global leader in the transition to low-carbon manufacturing, including of electric vehicles,” said David Piccini, Minister of Environment, Conservation and Parks in a press release. “This is great news for Ontario workers and their families today and for our children and grandchildren who will benefit from a cleaner environment for many generations to come.”

Ontario says the shift to “green steel” technology is critical as large automakers and other major manufacturers around the world look to reduce emissions along all their supply chains.

The project will transition the Hamilton steelmaker to a hydrogen-ready, direct reduced iron–fed electric arc furnace. Officials say this will result in higher productivity, product quality, and energy efficiency.

“This investment puts us on a path to low-carbon, sustainable steel and is possible only through partnership with government,” said Ron Bedard President and CEO, ArcelorMittal Dofasco in a press release. “All options for the newest, most advanced technology that achieves maximum carbon reduction for steelmaking, enhanced product capability and quality, and advanced manufacturing employment opportunities were explored. Extensive benchmarking and modelling were also completed in preparing the ultimate plan for the sustainability of the environment, the company, employees, customers, and the community.”

The company is Canada’s largest producer of flat-rolled steel and Hamilton’s largest private-sector employer.