Transition to DRI-EAF steelmaking set to reduce carbon emissions at ArcelorMittal Dofasco in Canada by 3 million tonnes and remove coal from the Company’s North American flat steel franchise
13 October 2022, 18:30 CET
ArcelorMittal (the ‘Company’), in the presence of the governments of Canada and Ontario, has today broken ground on its CAD$1.8 billion investment decarbonisation project at the ArcelorMittal Dofasco plant in Hamilton, Ontario, Canada.
The project, a partnership between ArcelorMittal 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 decarbonisation efforts and is part of ArcelorMittal’s target to reduce the carbon intensity of the steel it produces by 25% by 2030.
It also demonstrates the power of public and private partnerships to accelerate progress, which are vital if the target of limiting the average global temperature increase to 1.5 degrees is to be achieved. The governments of Canada and Ontario having committed CAD$400 million and CAD$500 million respectively to the overall project cost.
The project will fundamentally change the way steel is made at ArcelorMittal 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 utilise green hydrogen as a clean energy input as and when a sufficient, cost-effective supply of green hydrogen becomes available.
Today’s ceremony took place at ArcelorMittal 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, Karina Gould; ArcelorMittal Chairman, Lakshmi Mittal; and ArcelorMittal Dofasco President and CEO Ron Bedard.
Speaking at the event, Prime Minister Trudeau said:
“ArcelorMittal Dofasco’s steel plant is not just a cornerstone of the Canadian economy and the Hamilton community – it’s an example to the world of what clean innovation will look like. By investing in ArcelorMittal Dofasco’s project to produce clean steel, we’re investing in the future of this plant and this industry. Together, we’re delivering real results: good, middle–class jobs, a strong economy, and clean air for today and generations to come.”
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 ArcelorMittal 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.“
Premier of Ontario, Doug Ford, said:
“Today is another example that here in Ontario we have everything we need to be a global leader in the manufacturing of clean steel to build made-in-Ontario cars, electric vehicles, and battery technologies. There is no better place for companies to invest and I want to send my thanks to ArcelorMittal Dofasco for this tremendous vote of confidence in Ontario, and our workers. Hamilton has deep roots as a Steel Town, and the women and men of this city will continue that proud tradition for decades to come.”
Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade, said:
“Today’s ground-breaking is an exciting milestone in ArcelorMittal Dofasco’s decarbonisation project that will help transform Ontario into a world-leading producer of green steel,” said. “Our government is proud to support innovative projects like this as part of our plan to build Ontario, grow the province’s end-to-end EV supply chain and protect local jobs.”
ArcelorMittal Chairman, Mr. Lakshmi Mittal said:
“Today is a historic moment for our company. This is the first full-scale decarbonisation 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 day is possible thanks to the power of partnership and in particular the confidence and support the governments of Canada and Ontario have shown in us. To have Prime Minister Trudeau with us here today, accompanied by senior members of his government and members of the Ontario government, is an honour and reflects the significance of today’s event for Canada and for the global steel industry.
“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 ArcelorMittal 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. To reach this point is not straightforward – we are here because of collaboration, because of understanding, because of partnership and because of support. We believe that what we are starting here today in Canada can become a model for the rest of the world in how to decarbonise 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. We at ArcelorMittal very much look forward to being central to that journey.”
