Supplied by Sault MP Terry Sheehan…
The Government of Canada’s number one priority remains keeping Canadians safe and supporting families and businesses through the COVID-19 pandemic. Even at this time, work continues to help the economy recover, create conditions for new jobs, lower emissions, and make life more affordable for Canadians.

Today, the Member of Parliament for Sault Ste. Marie, Terry Sheehan, on behalf of the Minister of Environment and Climate Change, the Honourable Jonathan Wilkinson, announced an investment of approximately $4 million from the Low Carbon Economy Fund to support Algoma Steel Inc.’s climate change initiatives. The integrated steel producer will use the funding to improve both the tar removal and light oil recovery areas of its coke making plant in Sault Ste. Marie, Ontario. This process will not only help reduce greenhouse gas emissions, but will also help improve local air quality.

The funding for this investment comes from the Champions stream of the Government of Canada’s Low Carbon Economy Challenge, which invests in projects that reduce carbon pollution, save money, and create good jobs. From this project, Algoma Steel Inc. will see an annual reduction of approximately 21,000 tonnes of greenhouse gas emissions, amounting to a cumulative reduction of about 596,000 tonnes over the project’s lifetime. That is equivalent to removing approximately 182,000 cars off the road for one year.

Canada’s climate plan is on track to deliver the largest emissions reduction in the country’s history. But these initiatives are just the beginning. The Government will continue to bring forward new and enhanced climate action measures to exceed our 2030 target and achieve net-zero emissions by 2050.

Quotes

“There is no vaccine for climate change. The Government of Canada is continuing its work to reduce emissions and build resilient communities and a low carbon economy, knowing the strong connection such efforts have on long-term health and financial well-being. Now more than ever, we are focused on making life more affordable for families while protecting our environment and growing the economy. Today’s announcement is about reciprocating and helping businesses such as Algoma Steel Inc. to deploy cleaner technology, reduce emissions and make efficient use of natural resources.”

– The Honourable Jonathan Wilkinson, Minister of Environment and Climate Change

“The environment and the economy go hand in hand. This investment marks an important milestone in making the Sault’s steel industry safer for the community, better for our environment, and more innovative for the future.”

– The Honourable Terry Sheehan, Member of Parliament for Sault Ste. Marie

“Algoma Steel has joined with our Canadian peers in aiming to achieve net-zero carbon emissions by 2050. It is an ambitious but important goal, one that requires the support of governments, research partners, customers, and our supply chain along the way. The tar and light oil project brings us one step closer to that goal, and we could not have done it without the support of the Government of Canada and the Low Carbon Economy Fund.”

– Michael McQuade, Chief Executive Officer, Algoma Steel Inc.

Quick facts
” The coke making process of steel production leads to the generation of a variety of byproducts. They include coke oven gas (COG), various tars, and light oil. By using better equipment to capture and remove byproducts suspended in COG, a steel manufacturer can reduce its greenhouse gas emissions and reduce local air pollution.
” Once separated from the other byproducts, the COG can be used to fuel other in-plant combustion processes at a lower carbon intensity.
” This project will improve air quality by capturing and removing pollutants suspended within the coke oven gas.
” The Champion stream of the Low Carbon Economy Fund is an important part of Canada’s climate action plan, and it’s helping put Canada on a path to meet and exceed the Paris Agreement target for 2030.
” Under the Low Carbon Economy Fund, the maximum percentage of total project costs the federal government can contribute toward a project varies depending on the recipient. The maximum federal share for specific recipients is as follows:
o 25 percent for businesses
o 40 percent for municipalities
o 40 percent for not-for-profit organizations
o 50 percent for provincial governments
o 75 percent for territorial governments
o 75 percent for Indigenous communities and organizations