Recycling Product News Logo

ArcelorMittal decarbonization project to recieve CAD$500M investment from the Government of Ontario

Rolls of steel in a facility
In the plan is a 2.5 million tonne capacity DRI facility and an EAF facility capable of producing 2.4 million tonnes of high-quality steel through its existing secondary metallurgy and secondary casting facilities.

ArcelorMittal has confirmed with the Government of Ontario its plan for a CAD$1.8 billion investment in decarbonization technologies at ArcelorMittal Dofasco's plant in Hamilton, Ontario. The investment will reduce annual CO2 emissions at ArcelorMittal's Hamilton operations by approximately 3 million tonnes, which represents approximately 60 percent of emissions. This means the Hamilton plant will transition away from the blast furnace-basic oxygen furnace steelmaking production route and use the direct reduced iron (DRI) - electric arc furnace (EAF) production route, which carries a significantly lower carbon footprint.

The project is scheduled to be complete by 2028, although the company is looking for opportunities to accelerate the project timelines.

The new manufacturing processes contribute to a considerable reduction of CO2 emissions and deliver other positive environmental impacts including the elimination of emissions and flaring from coke making and iron making operations.

The investment was contingent on support from the governments of Canada and Ontario. The Government of Canada will invest CAD$400 million in the project and the Government of Ontario will invest CAD$500 million in the project. This secures project funding and firms up the investment.

At the heart of the plan is a 2.5 million tonne capacity DRI facility and an EAF facility capable of producing 2.4 million tonnes of high-quality steel through its existing secondary metallurgy and secondary casting facilities. Modification of the existing EAF facility and continuous casters will also be undertaken to align productivity, quality and energy capabilities between all assets in the new footprint.

This project contributes to the sustainability of well-paying skilled positions in advanced manufacturing and is also expected to support as many as 2,500 jobs during the engineering and construction phases. It will also support ArcelorMittal Dofasco's customer decarbonization ambitions while further enhancing ArcelorMittal Dofasco's capability to support the most demanding product segments including automotive exposed, advanced high strength steels, and consumer packing.

This new production route for ArcelorMittal Dofasco will provide a technically advanced manufacturing environment for operations, maintenance, and technology staff to work in with improved health and safety. New positions, training, and development will be provided for employees moving from existing business units to new assets, with approximately 160,000 training hours required to transition our workforce to the new footprint.

"Reducing our CO2 emissions intensity worldwide by 25 percent by 2030 is an ambitious target for a steel and mining company," said ArcelorMittal North America CEO John Brett. "But we believe it is achievable and that it is our responsibility to invent or innovate the processes and technologies that will enable us to reach that goal. As part of that, we understand that in the coming years, the assets used to make steel will undergo a transformation on a scale not seen for many decades."

"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," said ArcelorMittal Dofasco president and CEO Ron Bedard. "Extensive benchmarking and modelling were also completed in preparing the ultimate plan for the sustainability of the environment, the company, employees, customers, and the community."

In addition to Canada, the company will also invest in decarbonization technologies in Belgium, France, and Spain. Combined investment for the four projects totals US$5.6 billion, with anticipated carbon emissions reduction totalling 19.5 million tonnes. These projects will help the company reduce its CO2 emissions intensity by 25 percent by 2030 group-wide, and in Europe by 35 percent by 2030.

Company info

4000, route des Aciéries
Contrecoeur, QC


Phone number:
1 800 361-2605

Read more

Related Articles