Dofasco aims to build 14-kilometre pipeline for ‘green steel’ project

ArcelorMittal Dofasco says its plan to transition to green steel" by 2028 hinges on the construction of a 14-kilometre natural gas pipeline in Hamilton.

The phasing out of coke ovens and blast furnaces in favour of electric arc furnaces will eliminate three million tonnes of carbon dioxide, says Tony Valeri, vice-president of corporate affairs.

The $1.8-billion project is expected to double demand for natural gas from roughly 500 million cubic metres to more than a billion, Valeri told council Wednesday.

But it's very important that we're able to execute this project on time and on budget."

The bayfront steelmaker and partner Enbridge's preferred pipeline route would require municipal permits to build along city roads.

They would very much welcome the support from the City of Hamilton to move this project forward," Murray Costello, a regional director with Enbridge, told The Spectator.

The preferred option would see the pipeline constructed along Highway 56, Upper Centennial Parkway, Barton Street East and Kenilworth Avenue North to the steelmaker.

That trajectory involves the least amount of impact on natural areas, including a less favourable alternative through King's Forest Golf Club, Costello noted.

Council offered mixed reactions to pipeline plan after the proponents' presentation at city hall.

Coun. Tammy Hwang called the project a really great opportunity" to cut greenhouse gases from the steelmaking operation.

That's acknowledged, said Coun. Alex Wilson, but the Dundas councillor told the presenters they should investigate ways to reduce natural gas consumption in Hamilton.

We have to ask sooner rather than later, and what we do matters more."

Likewise, environmentalist Don McLean told council adding more fossil fuel to the mix will only exacerbate the climate crisis. It's really disturbing that we're looking at another large pipeline."

Enbridge could instead direct its substantial" funds toward the replacement of natural gas in local homes with heat pumps, McLean suggested.

He also noted that steelmaking operations in Sweden have already gone free of fossil fuels.

So it can be done, and it can be done right now in terms of the technology."

Valeri said ArcelorMittal Dofasco is exploring alternatives such as hydrogen but part of the challenge" is having enough supply to fuel operations in the short term.

This is really the first phase to the transition to net zero or low-carbon steel," he said.

The pipeline project, which Costello says doesn't yet have a price tag, requires environmental studies, public consultation and various permits.

The partners plan to report back to council with an update before submitting the proposal to the Ontario Energy Board for consideration.

The hope is to receive board approval in August 2024 to allow construction to start in the spring of 2025 and wrap up by the end of that year.

The transition of production is to start in 2026, with the existing and new operations producing in tandem until full phase-out of the former in 2028, Valeri noted.

Coun. Matt Francis asked to be kept in the loop of eventual construction plans, noting the last thing" Ward 5 needs is for roads to be ripped out" right after repairs.

Enbridge would abide by an agreement it has with the city that has it replace roads in as good or better condition" following any work, Costello told The Spectator.

ArcelorMittal Dofasco has landed $900 million in funds from the Ontario and federal government for the green steel" transition.

Teviah Moro is a reporter at The Spectator. tmoro@thespec.com