ArcelorMittal starts construction on Dofasco plant decarbonization project
ArcelorMittal has officially broken ground on a massive decarbonization project at its Dofasco steel plant in Hamilton.
Prime Minister Justin Trudeau and Ontario Premier Doug Ford were among those on hand at the ground-breaking event on October 13.
“ArcelorMittal Dofasco’s steel plant is not just a cornerstone of the Canadian economy and the Hamilton community – it’s an example to the world of what clean innovation will look like,” said Trudeau. “By investing in ArcelorMittal Dofasco’s project to produce clean steel, we’re investing in the future of this plant and this industry.”
The $1.8-billion project was announced in July of last year. It will see the steel company transition the Hamilton site to direct reduced iron-electric arc furnace (DRI-EAF) steelmaking. The technology carries a considerably lower carbon footprint and removes coal from the ironmaking process.
The new 2.5 million tonne capacity DRI furnace will initially operate on natural gas but will be constructed hydrogen ready so it can be transitioned to utilise green hydrogen as a clean energy input as and when a sufficient, cost-effective supply of green hydrogen becomes available.
The project plays a huge role in ArcelorMittal efforts to reduce the carbon intensity of the steel it produces by 25% by 2030. The manufacturer is one of the largest in the world, with primary steelmaking facilities in 16 countries and total crude steel production of more than 69 million metric tonnes last year.
“ArcelorMittal’s ambition is to lead the decarbonisation of the steel industry,” said CEO Aditya Mittal. “Steel is a critical material that will sit at the heart of a decarbonised economy. It is a vital material for the renewable energy infrastructure, the electric vehicles and the low carbon buildings that will build our zero-carbon world. The scale of this opportunity is significant, and we want to ensure that we can meet the demand this opportunity will bring with growing volumes of increasingly lower-carbon steel.
The governments of Canada and Ontario have committed a combined $900 million to the overall project cost.
“Today is another example that here in Ontario we have everything we need to be a global leader in the manufacturing of clean steel to build made-in-Ontario cars, electric vehicles, and battery technologies,” Ford said.
Since the project was announced last year, ArcelorMittal Dofasco has established a dedicated project team to manage its transition, completed significant pre-front end engineering and design (pre-FEED) work as well as analysis of the equipment needed for its transformation.
The first onsite construction work will begin in January 2023, with the demolition of the decommissioned No.1 Coke Plant to make room for the new DRI plant. Demolition is anticipated to take up to nine months to complete.
Also in 2023, detailed engineering work will be undertaken before foundation work begins in 2024. Construction will become visible from outside the manufacturing campus in 2024 as the structures begin to take shape. Construction on the new assets will be complete in 2026, at which point a 12 to 18-month transition phase will begin with both steelmaking streams (BF-BOF and DRI-EAF) active. The transition will be complete by 2028.
In addition to the new DRI facility, the project also involves the construction of an EAF capable of producing 2.4 million tonnes of high-quality steel through ArcelorMittal Dofasco’s existing casting, rolling and finishing facilities. Modification of ArcelorMittal Dofasco’s existing EAF facility and continuous casters will also be undertaken to align productivity, quality and energy capabilities between all assets in the new footprint.
This project is expected to support as many as 2,500 jobs during its engineering and construction phases.