Algoma Steel investing C$700M to build electric arc furnaces, slash emissions

The board of Canada-based Algoma Steel Group Inc. approved the company's plan to spend C$700 million on two new electric arc furnaces that will replace its existing blast furnace and basic oxygen steelmaking operations.

The project is expected to cut Algoma Steel's emissions by about 70% or 3 million tonnes of carbon dioxide per year, Algoma Steel said Nov. 11.

After project completion, Algoma Steel's operation will have raw steel production capacity of about 3.7 million tons per year, matching its downstream finishing capacity. The facility will also include a new vacuum degassing capability to expand the company's offering of steel plate grades.

Algoma Steel expects the facilities to be online in 2024 after a 30-month construction period.

Algoma Steel plans to fund the project with its previous financing commitments and US$306 million in proceeds from its merger with Legato Merger Corp., a special purpose acquisition company, that was completed in mid-October.