Dalton & Dave celebrate opening of cogeneration facility

Ontario Premier Dalton McGuinty had help from Essar Steel Algoma Chief Executive Officer Armando Plastino and Sault MPP David Orazietti to throw the symbolic switch on a 70 megawatt cogeneration facility.

The operative word was symbolic.

The switch they threw today didn't complete the circuit with the generator that will reduce Essar Steel Algoma's reliance on the provincial power grid by 50 percent.

Instead, it lit up several nets of Christmas lights hanging overhead in a brand-new cavernous machine shop that had been temporarily converted for the occasion into a ballroom with a distinctively industrial feel.

After speeches from Plastino, Orazietti, McGuinty and Project Manager Emilio Rigato, Sault MP Tony Martin and Mayor John Rowswell, the switch was pulled.

Then, local and visiting dignitaries and media took tours of the co-generation facility followed by a sit-down dinner for the honoured guests. The following news release was issued today by Sault MPP David Orazietti:

*************************** Premier and Orazietti officially start up new co-generation facility at Essar Steel

McGuinty government renewable energy strategy supports $135 million project in Sault Ste. Marie

SAULT STE. MARIE - (July 17) - Premier Dalton McGuinty and MPP David Orazietti participated in the official opening of the new $135 million cogeneration facility at Essar Steel today which will help the local company become more competitive while lowering emissions.

“Essar Steel operates plants around the world and today we can say that one of the most advanced and sustainable of those plants is right here in Sault Ste. Marie, Ontario. It's home to the best and the most highly skilled workers in the world; and new green technology that's better for our air, and saves energy at the same time," said Dalton McGuinty, premier of Ontario. 

The new 70 MW cogeneration facility will reduce Essar Steel’s reliance on the provincial power grid by 50 percent on average and reduce the company’s nitrous oxide emissions by 15 percent or 400 metric tonnes per year.

The project in Sault Ste. Marie was facilitated by a 20-year power purchase agreement signed with the Ontario Power Authority (OPA) that allows Essar to sell power back to the provincial grid.

The project also created 200 jobs during the construction phase.

“Everyone in Sault Ste. Marie recognizes the importance of supporting Essar Steel, and I am extremely pleased that this facility is now operational with the support of our innovative provincial energy purchasing initiative,” said Orazietti. “This cogeneration project will further strengthen the position of Essar Steel in the market place while increasing job security for steel workers and their families.”

The new co-generation facility in Sault Ste. Marie, is part of a province-wide combined heat and power (also known as cogeneration) strategy that saw the Ontario Power Authority sign contracts for six other high-efficiency projects across Ontario in 2006, for a total capital investment of $800 million with a combined electrical capacity of 414 MW - enough to satisfy the needs of some 400,000 Ontario homes.

The contracts are the culmination of the first phase of a competitive procurement process - the first of its kind in Canada - designed to take advantage of situations where larger industries or groups of users require both electricity and thermal energy for industrial use, heating or cooling.

“Our government’s renewable energy program that helped facilitate the new cogeneration facility at Essar not only allows the company to benefit from their investments, but will have very positive environmental impacts due to a reduction in greenhouse gases,” said Orazietti.  

Other projects in Sault Ste. Marie supported by the McGuinty government’s renewable energy strategy include:

- Provincial power purchase agreement to support $400 million Brookfield Renewable Power Wind Farm.

- Provincial power purchase agreement to support $360 million POD Solar Farm.

- Certificate of Approval for Elementa’s Waste-From-Energy project.

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