Algoma Steel Group Inc., a Canadian producer of hot- and cold-rolled steel sheet and plate products, will construct two new electric-arc furnaces (EAFs) to replace its existing blast furnace and basic oxygen steelmaking operations. The transformation is expected to reduce Algoma’s carbon emissions by approximately 70%. Following the transformation to EAF steelmaking, Algoma’s facility in Sault Ste. Marie, Ontario, is projected to have an annual raw steel production capacity of approximately 3.7 million tons. The facility will also include new vacuum degassing capability to expand Algoma’s offering of steel plate grades.

Algoma plans to invest approximately $556 million in the EAF transformation. The company anticipates a 30-month construction phase for the EAF facility, which will come online in 2024, and expects to transition away from blast-furnace steelmaking thereafter.