Canada: Sustainable Technologies Arcelor Mittal, Government of Canada to Invest Almost 2-Billion-Dollars in Decarbonization Solutions
Arcelor Mittal and the Government of Canada will invest the money in decarbonization technologies at Arcelor Mittal Dofasco’s plant in Hamilton, Canada. In this background, the facility will establish Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF) units in order to reduce carbon emissions by approximately 60 %.
Luxembourg/Luxembourg – Arcelor Mittal has announced with the Government of Canada its intention for a 1.40-billion-dollar (CAD$1.765 billion) investment in decarbonization technologies at Arcelor Mittal Dofasco’s plant in Hamilton, Canada. The intended investments will reduce annual CO2 emissions at Arcelor Mittal’s Hamilton, Ontario operations by approximately 3 million tons, which represents approximately 60 % of emissions, within the next seven years. This means the Hamilton plant will transition away from the blast furnace-basic oxygen furnace steelmaking production route to the Direct Reduced Iron (DRI) – Electric Arc Furnace (EAF) production route, which carries a significantly lower carbon footprint.
Arcelor Mittal will introduce new manufacturing processes that contribute to a considerable reduction of CO2 emissions and deliver other positive environmental impacts including the elimination of emissions and flaring from coke making and ironmaking operations.
The investment is contingent on support from the Governments of Canada and Ontario. The Government of Canada recently announced that it will invest 318 million dollars (CAD$400 million) in the project. The Company is in discussions with the Government of Ontario regarding its support.
The announcement was made at an event in Arcelor Mittal Dofasco’s plant in Hamilton, which was attended by Arcelor Mittal CEO Aditya Mittal, Arcelor Mittal Dofasco President and CEO Ron Bedard, Canada’s Deputy Prime Minister Chrystia Freeland, Minister of Innovation, Science and Industry François-Philippe Champagne and Minister of Labour Filomena Tassi.
At the heart of the plan is a 2-million-ton capacity DRI facility and an EAF facility capable of producing 2.4 million tons of high-quality steel through its existing secondary metallurgy and secondary casting facilities. Modification of the existing EAF facility and continuous casters will also be undertaken to align productivity, quality and energy capabilities between all assets in the new footprint.
The new DRI and EAF will be in production before the end of 2028.
This project contributes to the sustainability of well-paying skilled positions in advanced manufacturing and is also expected to support as many as 2,500 jobs during the engineering and construction phases. It will also support Arcelor Mittal Dofasco’s customers decarbonization ambitions while further enhancing Arcelor Mittal Dofasco’s capability to support the most demanding product segments including automotive exposed, advanced high strength steels, and consumer packing.
This new production route for Arcelor Mittal Dofasco will provide a technically advanced manufacturing environment for operations, maintenance, and technology staff to work in, with improved health and safety.
François-Philippe Champagne, Minister of Innovation, Science and Industry, said: “We are supporting our steel workers and companies like Arcelor Mittal Dofasco as they seize today’s opportunities in the low-carbon economy and they do their part in the fight against climate change. This investment will ensure that Canada’s largest producer of flat-rolled steel adopts innovative technologies, continues to provide economic opportunities for Canadian workers, and contributes meaningfully toward our climate targets. This investment will create good jobs in communities like Hamilton and clean Canadian-made products for the world for decades to come.”
Speaking at the announcement in Hamilton, Aditya Mittal, CEO Arcelor Mittal, said: “The plans we have announced today represent a historic moment for Arcelor Mittal in Canada and North America, marking the beginning of a new era of steelmaking in Hamilton, that will result in a 60 % drop in CO2 emissions within the next seven years. We are very pleased to be in partnership with the Government of Canada - as partners, we all recognize that it is vital to accelerate our carbon emissions reduction and strengthen our climate action. Indeed, progress in the next decade is vital if the world is to reach net zero by 2050.
“This project is part of Arcelor Mittal’s new global 25 % CO2 2030 emissions reduction target which was recently announced in our second climate action report. DRI-EAF technology, such as that being introduced in Dofasco, is at the heart of our new target although we also continue to develop our smart carbon technology route. Transitioning from the blast furnace route to the DRI-route, offers an immediate significant reduction in emissions in the first phase through natural gas and then in a second phase, which we call innovative DRI, harnessing green hydrogen or other Smart Carbon technologies.
“This is the first significant decarbonization project we have announced outside Europe.”