The most expensive project in the history of Sault Ste. Marie will be built by Algoma Steel. The $703 million project will feature a pair of electric arc furnaces that will replace the plant's existing blast furnace, coke oven batteries, and basic oxygen steelmaking operations. The facility is expected to reduce carbon emissions by up to 70 per cent.
The preparations will include the foundations of several areas of the future facility, including the Scrap Yard and Melt Shop. In addition to the two electric arc furnaces, the new facility will also include:
- Power sub-station
- Water treatment plant
- Two dedicated baghouses
- Vacuum degasser
The project is also expected to generate 500 new construction jobs for the community.
The electric arc furnace is used to reduce iron from iron ore. Heat is generated from an electric arc between electrodes. Oxygen is blown into the furnace, and lime and other materials are added to combine with the impurities and form slag. Molten iron is extracted and poured out via a tapping spout.
The electric arc furnace can produce up to 85% less carbon dioxide than blast furnaces. They also cost less than blast furnaces and take up less space in a factory. An electric arc furnace can also reach higher temperatures much faster and can melt and produce products more quickly, as well as having more precise control over the temperature compared to blast furnaces.
SooToday reports that Senior Project Supervisor Shane Gillespie stated that they are on track for commissioning in the spring of 2024.
"The proposed operational transition will occur in two phases. During the first phase, we plan to alternate arcing on one furnace at a time, supplementing the scrap charge with approximately 30 per cent hot metal from the blast furnace which will be operating at a reduced level. In the second phase, as the availability of electric power from the grid increases, we will be able to run both furnaces together by 2029." "This is a good chance to really clean up what we have, and it's a better way to make steel. It will dramatically shrink Algoma's environmental footprint, resulting in cleaner air and water in the community. The new facility will also increase steelmaking capacity from 2.8 million to 3.7 million liquid tons - that's over 30 per cent more capacity."
Senior Product Supervisor | Shane Gillespie
Other benefits of the EAF steelmaking facility include:
- Improves competitiveness
- Creates cost competitive platforms
- Reduces sustaining capital requirements to allow more opportunity to invest
- Reduces exposure to carbon taxes
- Enhances product quality and diversification and succession opportunities
- Provides more apprenticeships, co-op placements, and highly skilled career opportunities
The project will eventually position Algoma among the leading producers of green steel in North America.
