ArcelorMittal Dofasco and the Ontario government are joining forces on a multi-billion dollar project aimed at transforming the province into a world-leading producer of green steel.
The approximately $1.8 billion project by ArcelorMittal Dofasco will see its Hamilton facility among the first of its global operations to replace coal-fed coke ovens and blast furnaces with new, low-emission technology. The move to a hydrogen-ready direct reduced iron fed electric arc furnace (EAF) would take advantage of Ontario’s clean electricity supply to eliminate the use of coal and coke from ArcelorMittal Dofasco’s steelmaking process, which is one of the largest sources of greenhouse gas emissions in the province.
The Government of Ontario is contributing up to $500 million in loan and grant support to the project, which will reduce carbon dioxide (CO2) emissions by about three million tonnes annually. The CO2 reduction is equivalent to taking almost one million cars off the road. 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.
“Reducing ArcelorMittal’s CO2 emissions intensity worldwide by 25% by 2030 is an ambitious target for a steel and mining company; but we believe it is achievable and that it is our responsibility to invent or innovate the processes and technologies that will enable us to reach that goal,” said John Brett, CEO North America, ArcelorMittal. “As part of that, we understand that in the coming years, the assets used to make steel will undergo a transformation on a scale not seen for many decades.”
ArcelorMittal Dofasco has produced steel in Hamilton for more than 100 years. The company is Canada’s largest flat-rolled steel producer, and Hamilton’s largest private-sector employer, employing about 4,600 people.
“Not only is this investment great news for the people of Hamilton, this is great news for people across the province as we take another step towards making Ontario a global innovation hub for building the car of the future,” said Premier Doug Ford.
