Hamilton is setting the standard for greener steel production on a global scale with a multi-million dollar project.
The federal and provincial governments have each contributed millions toward ArcelorMittal Dofasco’s $1. 8 billion decarbonization plan, which aims to shut down the steelmaker’s coke ovens and blast furnaces by 2028 and expand the use of electric arc furnace technology.
On Thursday, Prime Minister Justin Trudeau attended a groundbreaking ceremony in Hamilton and declared that the $400 million federal investment announced in July is assisting Dofasco in becoming the first significant steel manufacturer in the world to switch to a cleaner method of producing steel.
In Hamilton, the first significant steel company in the world is currently switching from coal to electricity, according to Trudeau.
“This big step is being led right here by all of you Canadians and by a company that has an understanding that Canada is a place that has a better idea about what the future looks like and how we’re going to get there than just about any other place in the world. ”
The project, which aims to reduce greenhouse gas emissions by up to 3 million tonnes every year by 2030, also received $500 million from the province government.
That is a 60% reduction in emissions, which is approximately the same as removing one million cars from the road.
Tammy Oommen, associate program manager for ArcelorMittal’s decarbonization program, said they’re in the process of determining how to maintain production while also building the new facility needed to make green steel.
In order to manage this transition and maintain our current assets operating so that we can continue to produce steel, Oommen added, “We need to consider how we can best arrange the equipment.”
In January, work on that demolition is expected to start.
Construction of the new facility will begin in 2024 and is expected to last over the next two years, followed by a 12- to 18-month “transition phase” that will be complete by 2028.
The groundbreaking, according to Lakshmi Mittal, chairman of ArcelorMittal Dofasco, is a “historic milestone” for the company and will ensure Hamilton’s prominence in the steel industry while also assisting Canada’s transformation to a net zero economy.
“Due to the roughly 2 billion tonnes of steel used worldwide, steel accounts for close to 7% of all carbon emissions. Therefore, it is imperative that we reduce carbon emissions and reach net zero.
We aim to lower emissions intensity across the group by 25% by 2030 as a first step toward achieving net zero by 2050.
François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, said the project will shape the future of Hamilton for generations to come.
“There are generations of people who have worked at Dofasco, but now that we can see that this plan will be in place for the next 30, 50 years, that we will be producing the greenest steel in the world, and that it will power the greenest car in the world, I think there is a sense of pride,” said one employee.
Trudeau will be in Hamilton to celebrate ArcelorMittal Dofasco’s shift to environmentally friendly steel production.
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