New investment in Canada’s steel industry to create jobs and build a cleaner future
As we work to end the fight against COVID-19, the Government of Canada is taking action to ensure Canadian businesses have the tools and resources they need to build strong communities and a better future for them. Canadians. By investing in clean technology, we will create good middle class jobs, strengthen our economy, reduce pollution and build back better for all Canadians.
Prime Minister Justin Trudeau today announced that Algoma Steel Inc. will receive up to $ 420 million to modernize its operations and phase out coal-fired steelmaking processes at its Sault Ste. Marie, Ontario.
This funding will allow the company to purchase state-of-the-art equipment to support its transition to electric arc furnace production. This electricity-based process is expected to reduce greenhouse gas (GHG) emissions by more than 3 million metric tonnes per year by 2030, thus significantly contributing to the achievement of Canada’s climate objectives. This is equivalent to taking over 900,000 passenger vehicles off the road, almost the number of passenger vehicles in Toronto.
The investment will create 500 well-paying jobs, throughout the construction and subcontracting phase of the project, and will create more than 600 new co-op placements for students. In addition, 75 Algoma employees will be trained for highly skilled jobs in science, technology, engineering and mathematics (STEM).
Our country’s steel producers provide thousands of good, middle-class jobs for Canadians, and we must ensure they remain a vital part of our economy as we transition to a cleaner future. Like Canadians across the country, the people of Sault Ste. Marie has demonstrated incredible strength and resilience since the start of the pandemic, and today’s announcement will help support a strong economic recovery for their community. The government will continue to support innovative projects that help us fight climate change, meet our environmental goals and create new opportunities for workers and businesses.
“Investments in clean technologies benefit the environment and our economy. Today’s announcement is great news for the people of Sault Ste. Married. It will help Algoma Steel create good middle class jobs and reduce pollution, while positioning Canada as a leader in cleaner, greener steelmaking. Our government will continue to support Canadian businesses and workers as we accelerate our transition to a clean growth economy that leaves no one behind.
“We are proud to support companies like Algoma Steel Inc. that seize opportunities to lead the low carbon economy. Today’s investment will ensure that one of Canada’s largest steel producers will play a key role in Canada’s economic recovery and make significant progress towards our climate goals. Our focus on a green recovery means creating good jobs in communities like Sault Ste. Marie and help us achieve our ambitious goal of net zero by 2050. ”
“We have to make sure we have the cleanest manufacturing in the world. Support from the Canada Infrastructure Bank to help Algoma Steel decarbonize the steel industry is good for Canadian jobs and economy, and essential in the fight against climate change.
“This project, when fully implemented, will significantly reduce greenhouse gases, strengthen the competitiveness of the Canadian steel industry and consolidate the potential for local economic growth. This modernization of industrial infrastructure is an example of the Canada Infrastructure Bank’s $ 10B Growth Plan in action.
“The 70 percent reduction in carbon emissions resulting from Algoma’s proposed transformation to electric arc furnace technology represents one of the most cost-effective opportunities per tonne to achieve large-scale sustainable GHG reductions in the country. Canada. The world cannot reach net zero without steel. Combining an electric arc furnace with low carbon electricity from Ontario will give our customers and our infrastructure investments a green steel advantage. We are very grateful for the Government of Canada’s leadership on this front and its commitment to supporting Algoma Steel’s transformation in sustainability.
- Based in Sault Ste. Marie, Ontario, Algoma Steel Inc. employs approximately 2,600 Canadians and is the only fully integrated producer of steel plate in Canada, making it a leader in the production of steel plate, strip and sheet rolled steel. hot and cold.
- As part of this investment of up to $ 420 million, Algoma Steel will receive up to $ 200 million from the Net Zero Accelerator initiative of the Strategic Innovation Fund and $ 220 million from the Infrastructure Bank of Canada. Canada. The total cost of the Algoma project is $ 703 million.
- The Canada Infrastructure Bank (CIB) is investing $ 35 billion and is partnering with private and institutional investors as well as other levels of government and Indigenous communities to support new infrastructure projects that generate income, support economic growth and take action on climate change. Today’s announcement is part of CIB’s goal of attracting private and institutional capital into green infrastructure and reducing GHG emissions through renovations, as announced in its 10-year growth plan. billion dollars last year.
- All of CIB’s investments are subject to due diligence and final approval by its board of directors.
- The Government of Canada launched the Net Zero accelerator in December 2020, as part of its enhanced climate plan, A healthy environment and a healthy economy. Thanks to this initiative and the additional funds announced in Budget 2021, the government is investing $ 8 billion over seven years to accelerate decarbonization projects with large GHG emitters, the transition to clean technologies and Canada’s industrial transformation in all sectors.
- In November 2020, the government introduced Bill C-12, the Canadian Net Zero Emissions Accountability Act, to establish a legally binding process to achieve net zero emissions by 2050, set five-year emission reduction targets and demand plans to meet each target and report on progress. The law received royal assent in June 2021.
- The steel industry currently accounts for 7% of global GHG emissions from energy industries, which is equivalent to global emissions from aviation, shipping and chemicals combined.
- In 2019, the Canadian steel industry employed more than 25,000 workers and contributed $ 3.8 billion to Canada’s gross domestic product.