Algoma Steel CEO issues statement about emissions

Michael D. Garcia, chief executive officer of Algoma Steel Group Inc., issued the following statement on Friday evening, after recent concerns were raised about emissions from the company's Sault steelmaking operations:

Open letter to our neighbours in Sault Ste. Marie

At Algoma Steel, we made the decision in November 2021 to fundamentally transform how we make steel.

We are investing approximately CDN$703 million to replace the existing coal-based steelmaking facility with two electric arc furnaces (EAFs) that recycle scrap metal.

This modern, best-in-class technology is designed to allow us to ultimately shut down our coke batteries and blast furnace, reduce carbon emissions by up to 70 per cent and significantly shrink Algoma’s environmental footprint with improvements to air, water, waste, and noise.

Construction is well underway and once the transition is complete, we expect to produce some of the world’s greenest steel right here in Sault Ste. Marie.

This is how we are working to ensure a greener tomorrow.

But what about today?

The reality is that coal-based steelmaking facilities in Ontario today do not meet the current Ontario Air Regulation Standards (known as 419/05).

The government has site-specific standards in place to allow for industries like ours whose assets pre-date modern standards to make this transition and monitor progressive improvements towards these goals.

These are not exemptions, but practical solutions that allow us to continue to produce steel, generate funds to invest in new technology and protect livelihoods related to this industry while urgently transforming our business for a greener tomorrow.

When we have fully transitioned to EAF steelmaking, we expect to meet the general Ontario standards but it cannot happen overnight.

A period of transition is required, and in the meantime, we will work with our existing technology, maintain our assets and pursue continuous process improvements to minimize our impact on the environment and meet an increasingly stringent regulatory framework.

Site-specific standards are based on computer models that predict emissions.

In 2021, the model used to predict potential maximum emissions changed.

To be clear – and contrary to recent media coverage - Algoma’s actual emissions did not change, only the method of modelling the emissions did.

When changes are made to the model, changes are required to the site-specific standards.

We are taking steps every day to reduce emissions, and we are not doing this alone.

We are working in partnership with all stakeholders to create a green steelmaking operation that can help secure the future of our local economy and contribute to a healthy, vibrant community for us all.

In the weeks and months ahead we will provide regular updates on our progress.

We look forward to ongoing dialogue, grounded in facts.

More information can be found on our website, along with fulsome disclosure on our EAF transition, site specific standards applications and commitment to ongoing environmental stewardship and through our community liaisons committee.

Sincerely,

Michael D. Garcia, chief executive officer