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Dofasco to phase out blast furnaces reducing emissions by 60 percent

Dofasco to phase out blast furnaces reducing emissions by 60 percent

In what will be the largest construction project in the history of Dofasco in Hamilton, the company will completely transform its steelmaking process from coal-fired blast furnaces, to electric arc furnaces (EAF) that mix scrap metal with direct reduced iron (DRI). DRI is produced by direct reduction of iron ore using carbon monoxide and hydrogen in a process that typically uses natural gas in North American applications,

Total value of the project is CAD$1.8 billion which was split roughly 50-50 between the company and the governments of Ontario and Canada. Canada announced its $400 million share last fall and today Premier Ford along with Minister of Economic Development Job Creation and Trade Vic Fedeli, Minister of Energy Todd Smith and MPP Donna Skelly announced that Ontario would contribute up to $500 Million for the project. The investment will reduce annual CO2 emissions at ArcelorMittal’s Hamilton, Ontario operations by approximately 3 million tonnes, which represents approximately 60% of emissions. This means the Hamilton plant will transition away from the blast furnace-basic oxygen furnace steelmaking production route to the Direct Reduced Iron (DRI) – Electric Arc Furnace (EAF) production route, which carries a significantly lower carbon footprint.

The project is scheduled to be complete by 2028, although the Company is looking for opportunities to accelerate the project timelines.

Today’s announcement was made at an event in ArcelorMittal Dofasco’s plant in Hamilton, which was attended by ArcelorMittal North America CEO John Brett, ArcelorMittal Dofasco President and CEO Ron Bedard along with Ontario Premier Doug Ford,

At the heart of the plan is a 2.5 million tonne capacity DRI facility and an EAF facility capable of producing 2.4 million tonnes of high-quality steel.

This project is expected to support as many as 2,500 jobs during the engineering and construction phases.

This new production route will result in new positions as well as training, and development that will be provided for employees moving from existing business units to new assets, with approximately 160,000 training hours required to transition the workforce to the new footprint.

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