ArcelorMittal Dofasco Receives $500 Million in Provincial Funding Towards Reducing Emissions
The ArcelorMittal Dofasco steel company is based in Hamilton, Ontario, Canada, and is a division of the world’s largest integrated steel producer, ArcelorMittal. The company was founded in 1912 and has become a global and economic giant that has brought prosperity and identity to the city of Hamilton. They are Hamilton’s largest private sector employer with nearly 5,000 employees. Each year, they ship 4.5 million net tons of high-quality flat carbon steel, and they partner with the world’s leading car brands, energy companies, packaging companies, and construction companies to create lighter, stronger, and more sustainable products.
Sustainability has always been a priority for Dofasco, with awards won for being the “most sustainable manufacturing company” in North America as far back as March 2000.
In February of 2022, the Ontario provincial government announced they will be contributing up to $500 million in loan and grant support towards the company’s approximately $1.8 billion project in global operations to replace coal-fed coke ovens and blast furnaces with new, low-emission technology.
What Will the Funding be Used for?
The province of Ontario and ArcelorMittal Dofasco are making a once-in-a-generation investment that will turn the province into a world leader in producing green steel. This will help Ontario’s automotive parts supply chain and the highly skilled workforce in steel manufacturing communities to meet the growing global demand for low carbon autos.
“Not only is this investment great news for the people of Hamilton, but this is also great news for people across the province as we take another step towards making Ontario a global innovation hub for building the car of the future. By investing in innovative technologies, we’re strengthening our economy and protecting good local jobs for Ontario workers.”
– Premier Doug Ford
It is estimated that this project will reduce carbon dioxide emissions (CO2) by a little more than three million tonnes per year, which is the equivalent of removing almost one million cars from the road. Large automakers and other major manufacturers across the world are seeking to reduce emissions along their entire supply chains with “green steel” technology.
Importance of Funding: Accelerating Carbon-Neutral Manufacturing
Through this investment, the province will significantly reduce greenhouse gas emissions (helping it to meet its 2030 greenhouse gas reduction target) and accelerate its transition to carbon-neutral manufacturing. Ontario’s investment will match the Government of Canada’s investment in the project, announced in July 2021. The goal is to have the project completed by 2028.
“This investment puts us on a path to low-carbon, sustainable steel and is possible only through partnership with government. All options for the newest, most advanced technology that achieves maximum carbon reduction for steelmaking, enhanced product capability and quality, and advanced manufacturing employment opportunities were explored. Extensive benchmarking and modelling were also completed in preparing the ultimate plan for the sustainability of the environment, the company, employees, customers, and the community.”
– Ron Bedard President and CEO, ArcelorMittal Dofasco.
In collaboration with the federal government, Ontario’s domestic steel industry and its customers, including major automotive, mining, energy, and construction companies, are working together to reduce the environmental impacts of their operations.
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