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Hamilton

ArcelorMittal Dofasco to demolish coke plant starting next year en route to halting coal use by 2028

Hamilton-based ArcelorMittal Dofasco has shared details of the next steps of an unprecedented move to stop using coal and reduce the amount of carbon involving in making steel.

$1.8B investment will help reduce carbon emissions from Hamilton-based steelmaker by 60%

A line of people learn forward while holding shovels with dirt.
Prime Minister Justin Trudeau was among those at a news conference in Hamilton at ArcelorMittal Dofasco on Thursday. The steelmaker will be phasing coal out of its production at its plant. (Bobby Hristova/CBC)

A Hamilton skyline without smokestacks is gettingcloser to reality.

ArcelorMittalDofascoshared details Thursday ofthe next steps of an unprecedented move to change how the companymakes steel.

The plant is the biggest producer of flat-rolled steel in Canada and the single biggest industrial source of carbon dioxide(CO2) emissions in Ontario.

It's expected switching over to direct reduced iron-electric arc furnace steelmakingwillcut carbon emissions from the plant by 60 per cent and completely remove coal from theprocess.

That willmean demolishing its decommissioned No. 1 Coke Plant in 2023 and starting construction on its new equipment. The construction should be done by 2026.

A man stands at a podium
Trudeau said the $1.8-billion investment, $400 million of which is coming from the federal government, to reduce carbon emissions at ArcelorMittal Dofasco will set a global example. (Bobby Hristova/CBC)

"Since the early '50s, variations of the stacks and equipment have dominated the Hamilton skyline behind me, and now that's all about to change," said Ron Bedard, ArcelorMittalDofasco's president and chief executive officer.

The old technology, the blast furnace and basic oxygen furnace,will run at the same time as the new equipmentandbe ramped down over the course of two years.

The $1.8-billioninvestment, announced by the company last summer, is set to help in reducing three million tonnes or 60 per cent of carbon from the plant. The province is contributing up to$500 million, with thefederal government investing another $400 million.

Bianca Caramento, acting general manager of Mohawk College's Centre for Climate Change Management, previously told CBCthat isalmost a30 per cent reduction of Hamilton's emissions overall.

Green steel will make Hamilton aglobal leader: Trudeau

Prime Minister Justin Trudeau, who was at the Hamilton plant on Thursday, said the investmentpositions the cityand the country as a leader in green steel.

It also gives Canadaa "competitive advantage."

"It's not happening in Europe, it's certainlynot happening in China... but this big step is being led right here," he told reporters.

ArcelorMittal Dofasco is the biggest producer of flat-rolled steel in Canada and the single biggest industrial source of CO2 emissions in Ontario. (Bobby Hristova/CBC)

Franois-Philippe Champagne, minister of innovation, science and industry, said it's a generational opportunity and will help keep jobs in the industry.

The Trudeau government has committed to cutting greenhouse gas emissionsby 40 to 45 per cent below 2005 levelsby 2030.

Unclear if new technology will lead to job losses

While the construction of the new technology will lead to 2,500 new jobs, it's unclear if orhow many steelworkers may lose their jobs.

Spokesperson Marie Verdun said there shouldn't bemany job lossesbased on 900people expected to retire between now and 2028.

Tammy Oommen, associate program manager of the project, said it will take 160,000 training hours to have the workforce learnthe new technology.

"There will be change and that's where we'll have to look at how do we support our people to be ready for the new context," she said.

Corrections

  • A previous version of this story said the $1.8-billion investment was federal funding. In fact, $1.8 billion is the total investment, with $500 million from the Ontario government and $400 million from the federal government.
    Oct 14, 2022 3:44 PM ET

With files from Saira Peesker