Ontario Construction News staff writer
ArcelorMittal Dofasco and Ontario are joining forces to transform the province into a “world-leading” producer of green steel to boost the auto parts supply chain and skilled workforce as global demand grows for low-carbon auto production.
A $1.8 billion project by ArcelorMittal Dofasco at the Hamilton facility will 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) will harness Ontario’s clean electricity supply to eliminate the use of coal and coke from ArcelorMittal Dofasco’s steelmaking process.
The Government of Ontario is contributing up to $500 million in loan and grant support to the project, expected reduce carbon dioxide (CO2) emissions by about three million tonnes annually – equivalent to taking almost a million cars off the road.
“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.
The EAF project will create 50 co-op placements and 30 apprenticeship placements. ArcelorMittal Dofasco has produced steel in Hamilton for more than a century and is the city’s largest private-sector employer. The company has produced steel in Hamilton for more than 100 years and is Canada’s largest flat-rolled steel producer.
ArcelorMittal Dofasco’s parent company, ArcelorMittal, is the world’s second-largest steel company, with primary steelmaking facilities in 17 countries.
“This investment puts us on a path to low-carbon, sustainable steel and is possible only through partnership with government,” said Ron Bedard president and CEO, ArcelorMittal Dofasco. “All options for the newest, most advanced technology that achieves maximum carbon reduction for steelmaking, enhanced product capability and quality, and advanced manufacturing employment opportunities were explored.”
In cooperation with the federal government, Ontario’s domestic steel industry and its customers, including major automotive, mining, energy, and construction companies, are working together to reduce the environmental impact of their operations and products. This investment will significantly reduce the province’s greenhouse gas emissions and accelerate the province’s pivot to carbon-neutral manufacturing. Ontario’s investment will match the Government of Canada’s investment in the project, announced in July 2021.
“ArcelorMittal Dofasco Hamilton will be the first integrated steel mill in North America to transition off coal, and among the first in the world. This is a massive achievement for the province and for Canada; and will solidify Ontario as a global leader in the transition to low-carbon manufacturing, including of electric vehicles,” said David Piccini, minister of environment, conservation and parks.
“This is great news for Ontario workers and their families today and for our children and grandchildren who will benefit from a cleaner environment for many generations to come.”