Algoma Steel and CIB Signed Agreement To Boost Green Steel Project

The construction is expected to extend to up to 30 months, with furnaces likely to become online in 2024.

SEATTLE (Scrap Monster): Algoma Steel- Canada’s only fully integrated steel plates producer, announced that it has reached a definitive agreement with the Canada Infrastructure Bank (CIB) towards financing of the company’s green steel transformation plan. The CIB had earlier committed to finance the upgrade project aimed at transforming the steelmaking processes at Algoma Steel’s Sault Ste. Marie, Ontario facility.

As per the agreement, the CIB will provide up to CDN $220 million towards financing the proposed CDN $700 million project to transform the steelmaking facility into electric arc furnace (EAF)-based. This is part of the CDN $5 billion package announced by the CIB towards financing green infrastructure projects.

Earlier during the month, the Board of Directors of Algoma Steel had approved construction of two new state-of-the-art electric arc furnaces in replacement of the existing basic oxygen steelmaking operations. The construction is expected to extend to up to 30 months, with furnaces likely to become online in 2024.

ALSO READ: Algoma Steel Strikes Merger Agreement with SPAC Firm

The financing by the CIB will enable purchase of state-of-the-art equipment by the company, which in turn will lead to up to 70% cut in greenhouse gas emissions. The project will position Algoma Steel as a leading green steel producer in North America.

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