Canada Infrastructure Bank to contribute up to $220 million to Algoma Steel's green steel transformation plan
The Canada Infrastructure Bank (CIB) and Algoma Steel have entered into a definitive agreement following the CIB's previously announced commitment to finance the transformational upgrade of Algoma's steelmaking processes at its facility in Sault Ste. Marie, Ontario.
Under the terms of the agreement, the CIB will provide up to CDN $220 million in financing towards the approximately CDN $700 million transformation to electric arc furnace (EAF) steelmaking. The electric-arc method uses high-current electric arcs to melt steel scrap and convert it into liquid steel of a specified chemical composition and temperature for making new steel.
Algoma's Board of Directors has authorized the construction of two new electric arc furnaces to replace Algoma's existing basic oxygen steelmaking operations.
The CIB financing will enable Algoma to purchase equipment to facilitate the EAF transformation which is expected to cut greenhouse gas emissions by approximately 70 percent, representing more than 3 million metric tonnes per year by 2030. This is equivalent to taking more than 900,000 passenger vehicles off the road.