The Government of Canada has announced an investment of approximately $4 million from the Low Carbon Economy Fund to support Algoma Steel Inc.’s climate action initiatives.

“As Canada safely reopens, our government is making strategic investments to stimulate local economies, create local jobs, and fight climate change,” said Minister of Environment and Climate Change, Jonathan Wilkinson. “This investment through the Low Carbon Economy Fund will support Algoma Steel’s efforts to switch to clean technology and will create new manufacturing and construction jobs for the people living in Sault Ste. Marie. This is an excellent example of how Canada will build back better following the pandemic.”

The integrated steel producer will use the funding to improve both the tar removal and light oil recovery areas of its coke-making plant in Sault Ste. Marie, Ontario. This process will not only help reduce greenhouse gas (GHG) emissions but will also help improve local air quality.

The funding for this investment comes from the Champions stream of the Government of Canada’s Low Carbon Economy Challenge, which invests in projects that reduce carbon pollution, save money, and create good jobs.

The funds will help Algoma Steel Inc. achieve an annual reduction of approximately 21,000 tonnes of GHG emissions, amounting to a cumulative reduction of about 596,000 tonnes over the project’s lifetime. That amount is equivalent to removing approximately 182,000 cars off the road for one year.

The federal government is working to enhance climate action measures to exceed the 2030 target and achieve net-zero emissions by 2050.

The coke-making process of steel production generates a variety of by-products including coke-oven gas, various tars, and light oil. By using better equipment to capture and remove by-products suspended in coke-oven gas, a steel manufacturer can reduce its GHG emissions and reduce local air pollution. Once separated from the other by-products, the coke-oven gas can be used to fuel other in-plant combustion processes at a lower carbon intensity. This project will improve air quality by capturing and removing pollutants suspended within the coke-oven gas.

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