Algoma Steel to Build New State-of-the-Art EAFs

SEATTLE (Scrap Monster): Canada-based steelmaker, Algoma Steel Group Inc. announced that its Board of Directors have approved construction of two new state-of-the-art electric arc furnaces (EAFs).

The two new furnaces will replace the existing blast furnace and basic oxygen steelmaking operations. The transformation will reduce carbon emissions by around 70%, thus positioning the company as a leading North American producer of green steel. Furthermore, the dual furnaces will ensure more raw steel production to match downstream finishing capacity, said the company press release.

ALSO READ:

Algoma Steel Strikes Merger Agreement with SPARC Firm

Algoma Steel Honored for Prioritizing Mental Health Initiatives

The decision to build electric arc furnaces will boost the annual raw steel production capacity to nearly 3.7 million tons. It is expected to lead to reduction of approximately 3 million tonnes of carbon dioxide per annum. The investment is aimed at creating value and ensuring long-term growth.

The transformation project is estimated to cost around CDN$700 million, which will be funded from previously announced financing commitments and proceeds from the recently concluded merger. The construction phase is likely to extend to over 30 months, with the furnaces expected to become online in 2024.