Canada-based steelmaker Algoma Steel has announced that local energy companies PUC Services and Hydro One have received approval from the Ontario Energy Board to construct a new 230kV transmission line and transformer station in the city of Sault Ste. Marie, which will support Algoma’s decarbonization efforts in its steelmaking activities at its Sault Ste. Marie steel plate mill, under which the blast furnaces will be replaced with electric arc furnaces (EAF).
According to PUC Services, the new line and station will support the load of about 280 MW from the Canadian producers’ two new EAFs due to be constructed. Moreover, the construction of the new transmission line is expected to begin in 2025, with completion scheduled for 2027.
Algoma’s $825 million EAF project is forecast to reduce its carbon emissions by 70 percent, which is equal to taking one million cars off the road, further strengthening its position in the North American steel sector.
Michael Garcia, president and CEO of the Canadian steelmaker, stated that the new transmission line will pave the way for green steel production in Ontario and that it will contribute to the sustainable economic growth in the region.