Today, Prime Minister Justin Trudeau along with the Minister of Innovation, Science and Industry, the Honourable François Phillippe Champagne announced up to $420 million in funding for Algoma Steel's electric arc furnace (EAF) steelmaking technology.
During his address at Algoma Steel today, Mayor Christian Provenzano remarked, "Today's announcement is the largest and most important public funding announcement in our community's history... No level of government has ever provided this amount of money for a project in our community."
"This investment will allow Algoma to modernize in a substantial and meaningful way," he continued. "It will allow Algoma to transform its technological operations, thereby reducing its emissions and its impact on our environment and our community. In every way, with this investment and this project, Algoma Steel will become a stronger, healthier and more sustainable steel producer and community partner."
"This investment will make Sault Ste. Marie a leader in fighting climate change, by helping Algoma Steel cut greenhouse gas (GHG) emissions by more than 3 million metric tonnes per year by 2030, the equivalent to removing almost a million passenger vehicles from the road," said Sault Ste. Marie MP Terry Sheehan in a news release issued today.
“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," said Michael McQuade, chief executive officer, Algoma Steel Inc. in the news release. "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."
In addition to reducing greenhouse gas emissions, the funding aimed at phasing out coal-fired steelmaking processes will "create 500 well-paying jobs, through the project’s construction phase and subcontracting, and will create over 600 new co-op placements for students."
The funding will also provide 75 Algoma Steel employees with training for high-skilled jobs in science, technology, engineering, and mathematics (STEM).