Prime Minister Justin Trudeau announced Monday that Algoma Steel Inc. will receive up to $420 million to retrofit their operations and phase out coal-fired steelmaking process at their facility.
“Investments in clean technology benefit the environment and our economy. Today’s announcement is great news for the people of Sault Ste. Marie. It will help Algoma Steel create good middle class jobs and cut pollution, while positioning Canada as a leader in cleaner and greener steelmaking,” Trudeau said.
He also added “The government will continue to support Canadian businesses and workers as we accelerate our transition to a clean-growth economy that leaves no one behind,” Trudeau said.
The Prime Minister’s Office in a statement said the funding will enable the company to purchase state-of-the-art equipment to support its transition to Electric-Arc Furnace production.
The statement further added that this electricity-based process is expected to cut greenhouse gas (GHG) emissions by more than 3 million metric tonnes per year by 2030, making a meaningful contribution to achieving Canada’s climate goals. “This is equivalent to taking more than 900,000 passenger vehicles off the road – almost the number of passenger vehicles in Toronto.”
Headquartered in Sault Ste. Marie, Ontario, Algoma Steel Inc. employs approximately 2,600 Canadians and is Canada’s only fully integrated producer of steel plates, making it a leader in the production of hot- and cold-rolled steel sheet, strip, and plate.
As part of this investment of up to $420 million, Algoma Steel will receive up to $200 million from the Strategic Innovation Fund’s Net Zero Accelerator initiative and $220 million from the Canada Infrastructure Bank.