Funding for Algoma Steel’s climate action initiatives
The Canadian Ministry of Environment and Climate Change announced in August 2020 a CAD 4 million investment from the Low Carbon Economy Fund to support Algoma Steel Inc.'s climate action initiatives, in order to improve both the tar-removal and light-oil-recovery areas of the company's coke-making plant in Ontario. The project is expected to amount to a cumulative reduction of 596,000 tons of greenhouse gas emissions over its lifetime.
In July 2021, the Canadian Prime Minister subsequently announced the steel company would receive up to CAD 200 million from the Strategic Innovation Fund’s Net Zero Accelerator initiative and CAD 220 million from the Canada Infrastructure Bank to retrofit their operations and phase out coal-fired steelmaking processes at the same facility.
The funding will support the transition to Electric-Arc Furnace production, which is expected to cut GHG emissions by more than 3 million metric tonnes per year by 2030. The total cost of Algoma’s project is $703 million.
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