So what is Canada doing to eliminate coal from steelmaking?
Electric arc and gas-fired direct reduction are being implemented now by Algoma Steel and ArcelorMittal Dofasco to eliminate metallurgical coal
While the United Kingdom confronts a crisis in domestic steelmaking and tries to prolong the life of its last aging blast furnaces, Canada’s transition to coal-free steel is well underway.
Both of Canada’s primary producers are transitioning from obsolete blast furnaces to green-steel technologies that will eliminate the use of metallurgical coal.
Algoma Steel is most advanced with the construction of two electric arc furnaces in Sault Ste. Marie, Ontario. The changeover will reduce the plants annual carbon emissions by 70 percent.
Algoma has started operating its electric arc furnaces and intends to permanently shut down its 50-year-old blast furnace by the end of this year. The government of Canada contributed $420 million of the $700 million investment.
In Hamilton, ArcelorMittal Dofasco is building a direct reduction furnace that will use natural gas, and later green hydrogen, to convert ore to iron. That virgin iron, and scrap steel, will be processed through two new electric arc furnaces to produce fresh steel.
The Acelor Mittal Dofasco project s budgeted to cost $1.8 million, including $900 million from the governments of Canada and Ontario. Design and engineering is underway with no published estimate for construction.
When the Hamilton project is commissioned, there will be zero Canadian demand for the metallurgical coal currently shipped from British Columbia.
I think there is a typo-the Dofasco project will surely cost $1.8 billion (not million). But the nails are slowly but gradually being driven into the coffin of our metallurgical coal prospects. RIP!
Ross Hodgetts
That is awesome!