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Its annual capacity would also increase more than 50 per cent to 3.7 million tonnes from its current capacity of 2.4 to 2.5 million tonnes.Ī big driver for this conversion is planned increases to carbon pricing by the federal government to spur a reduction in Canada's greenhouse gas emissions. McQuade said the electric arc furnace is a proven technology that would allow Algoma to adjust output to market demand, something that is not easily achievable with traditional blast furnaces that heat iron ore with coking coal at high temperatures.
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The new furnace would primarily convert scrap metal into molten steel using Ontario's electricity grid, which is largely sourced from non-fossil fuel sources. The move, supported by $420-million from the federal government and US$306 million from its merger with Legato, would reduce the 120-year-old company's carbon emissions by about 70 per cent. Marie, Ont., announced a $703-million plan to go electric by converting its greenhouse-gas spewing blast furnace to an electric arc furnace.
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Just three months after again becoming a public company and three years after emerging from court protection from creditors, the largest employer in Sault Ste. That has not always been the case as rivals have previously flooded the market when transportation costs were lower, sending the commodity price of the metal lower.Īlgoma is taking advantage of the current situation to pursue initiatives it says will position it as a low-cost producer in the future. fetches elevated prices amid strong demand from an uptick in oil drilling and infrastructure spending. Profits are soaring as production destined primarily for sale in Canada and the U.S. The $15 billion industry produces about 13 million tonnes of primary steel, steel pipe and tube products in more than 30 facilities in five provinces.