Hamilton steelmaker spent months lobbying for green technology offered to Algoma
ArcelorMittal Dofasco lobbied the federal government about grants for electric arc furnaces for months before the prime minister teased a mystery investment meant to slash carbon emissions at the Hamilton steelmaker.
Prime Minister Justin Trudeau tantalized environmentalists July 5 at a Sault St. Marie climate announcement by also promising a major investment" for Hamilton's ArcelorMittal Dofasco very soon."
He did not say how much money was on offer, or for what kind of project - other than to suggest it would cut annual greenhouse gas emissions at the steelmaker by up to three million tonnes.
Climate activists like Lynda Lukasik of Environment Hamilton say they are anxious" to learn the details, since the city's largest steelmaker is also Ontario's largest industrial carbon polluter, with annual emissions of 4.8 million tonnes.
ArcelorMittal Dofasco has so far declined to say what project is under discussion for funding. Hamilton MP and Labour Minister Filomena Tassi said via email the government is working with the steelmaker on an important project that will benefit Hamiltonians," but she could not say when an announcement is planned.
Federal lobbyist registry records, however, show the Canadian arm of the international steelmaking giant has been lobbying since midway through last year about funding for electric arc furnaces."
That's the same technology the federal government is funding at Sault Ste. Marie's Algoma Steel - to the tune of $420 million - with a goal to phase out coal-fired steelmaking" and cut emissions by three million tonnes by 2030.
Electric arc furnaces can be significantly less polluting - particularly if the source of electricity is green - but tend to rely on recycled steel scrap as a primary feedstock, said economist and steel industry researcher Peter Warrian.
ArcelorMittal Dofasco already has one electric arc furnace in use, but it produces far more high-end" steel that starts with iron ore processed in traditional blast furnaces - which burn a lot of carbon.
High-end steel for electric cars and the like, you're not doing that right now with an electric arc furnace," said Warrian, who is interested to see what Hamilton carbon-cutting project the federal government is proposing to fund.
Warrian said a new or additional electric arc furnace could help the Hamilton steelmaker cut emissions, but he doubts that would get them all the way" to the magnitude of greenhouse gas cuts alluded to by the prime minister. (Trudeau said combined, the Algoma and mystery Hamilton projects could slash annual emissions by six million tonnes.)
Right now, ArcelorMittal Dofasco has three blast furnaces that burn high-carbon coke to reduce ore into molten iron, which is then turned to steel in a basic oxygen furnace. Turning coal into coke also creates greenhouse gases.
It takes about a tonne of metallurgical coal to produce a tonne of steel via this traditional process, Warrian said.
The future of green" steelmaking is often assumed to be clean hydrogen, which could eventually replace coke. ArcelorMittal is experimenting with hydrogen-based steelmaking in Europe - but Warrian said the transition to that technology could be years or even decades away.
He said it's possible ArcelorMittal Dofasco will first experiment with replacing some coal and coke with waste wood or other biomass from Canada's forestry industry, which would reduce emissions.
Carbon capture" projects that trap, store or recycle gases that would otherwise escape Hamilton's plant could also be a project on the federal government's radar, he suggested.
The federal government's last budget included billions of dollars in grants and tax incentives for carbon reduction and capture projects in industries like steel.
Matthew Van Dongen is a Hamilton-based reporter covering transportation for The Spectator. Reach him via email: mvandongen@thespec.com