Pioneering Project Arcelor Mittal Breaks Ground for Mega Decarbonization Project in Canada

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Arcelor Mittal recently held a breaking ground ceremony for its mega decarbonization project at the Arcelor Mittal Dofasco plant in Hamilton, Canada. The sustainable project is expected to lower carbon emissions at the steel production plant by 3 million tonnes.

Luxembourg/Luxembourg – Arcelor Mittal in the presence of the Governments of Canada and Ontario, has broken ground on its 1.8 billion Canadian dollar investment decarbonization project at the Arcelor Mittal Dofasco plant in Hamilton, Ontario, Canada.

The project, a partnership between Arcelor Mittal and the Governments of Canada and Ontario, which was first announced in July last year, will play an important role in ensuring the Company makes progress this decade with its decarbonization efforts and is part of Arcelor Mittal’s target to reduce the carbon intensity of the steel it produces by 25 % by 2030.

The Governments of Canada and Ontario having committed 400 million Canadian dollars and 500 million Canadian dollars respectively to the overall project cost.

The project will fundamentally change the way steel is made at Arcelor Mittal Dofasco, transitioning the site to direct reduced iron-electric arc furnace (‘DRI-EAF’) steelmaking, which carries a considerably lower carbon footprint and removes coal from the ironmaking process. The new 2.5 million tonne capacity DRI furnace will initially operate on natural gas but will be constructed ‘hydrogen ready’ so it can be transitioned to utilize green hydrogen as a clean energy input as and when a sufficient, cost-effective supply of green hydrogen becomes available.

The ceremony took place at Arcelor Mittal Dofasco’s site in Hamilton and was attended by: Canadian Prime Minister Justin Trudeau; Minister of Innovation, Science and Industry, François-Philippe Champagne; Minister responsible for the Federal Economic Development Agency for Southern Ontario, Filomena Tassi; Minister of Families, Children and Social Development; Arcelor Mittal Chairman, Lakshmi Mittal; and Arcelor Mittal Dofasco President and CEO Ron Bedard.

Reinforcing the Government of Canada’s support, Minister of Innovation, Science and Industry François-Philippe Champagne, said: “Today represents a major step on our way to a net-zero future. Canadian steel companies are world-class and this project places Canadian workers at the heart of the future of the steel industry. This project will enable Arcelor Mittal Dofasco to produce cleaner, greener steel, while ensuring low-carbon manufacturing. It will mean Canadian made steel will be more competitive on a global scale and will secure good jobs for Canadian workers and their families in the Hamilton region.”

Arcelor Mittal Chairman, Lakshmi Mittal said: “Today is a historic moment for our company. This is the first full-scale decarbonization project we have broken ground on since announcing our commitment to achieve net zero by 2050 and reduce carbon emissions intensity by 25% by 2030.

“This project will transform how we make steel in Hamilton by introducing coal free, lower-carbon technologies. It will enable us to make significant progress this decade, reduce our emissions in Hamilton by approximately 60 per cent and lay strong foundations for near zero steelmaking. It will also ensure that Hamilton’s rich history of steelmaking endures, and that Arcelor Mittal Dofasco is able to produce the advanced steel solutions Canada needs to support its own vision of transitioning to a net zero economy.

“Today’s event marks an important step towards that goal. We believe that what we are starting here today in Canada can become a model for the rest of the world in how to decarbonize steel. As the most circular of materials, with the lowest comparable carbon footprint, we must work together to demonstrate how steel companies can produce lower-carbon and ultimately near-zero steel that will make such a valuable contribution to a near-zero economy.”

Recently, the Hamilton team shared updates on the projects progress including news that Energiron, the innovative direct reduction technology jointly developed by Tenova and Danieli & C., has been chosen as its DRI equipment. It will produce 2.5 million tonnes of DRI per year to be used in Hamilton’s EAFs to produce the most demanding steel grades. The DRI plant will be the largest single-module direct reduction plant in Canada.

The first onsite construction work will begin in January 2023, with the demolition of the decommissioned No.1 Coke Plant to make room for the new DRI plant. Demolition is anticipated to take up to nine months to complete.

Also in 2023, detailed engineering work will be undertaken before foundation work begins in 2024. Construction will become visible from outside the manufacturing campus in 2024 as the structures begin to take shape. Construction on the new assets will be complete in 2026, at which point a 12 to 18-month transition phase will begin with both steelmaking streams (BF-BOF and DRI-EAF) active. The transition will be complete by 2028.

In addition to the new DRI facility, the project also involves the construction of an EAF capable of producing 2.4 million tonnes of high-quality steel through Arcelor Mittal Dofasco’s existing casting, rolling and finishing facilities. Modification of Arcelor Mittal Dofasco’s existing EAF facility and continuous casters will also be undertaken to align productivity, quality and energy capabilities between all assets in the new footprint.

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