Continuing in its recent commitments towards sustainable metal production, on July 30 the Canadian government announced a $400 million in ArcelorMittal Dofasco to support the phase out of its coal-fired steelmaking facilities in Hamilton, Ontario.

The project, which will cost $1.765 billion in total, will convert ArcelorMittal’s current steelmaking facilities to a hydrogen-ready, direct reduced iron-fed electric-arc furnace. According to the announcement, this will be the first time that this technology will be used at this scale and is expected to reduce greenhouse gas (GHG) emissions by three million tonnes per year by 2030.

“The plans we have announced today represent a historic moment for ArcelorMittal in Canada and North America, making the beginning of a new era of steelmaking in Hamilton that will result in a 60 per cent drop in CO2 emissions within the next seven years,” ArcelorMittal CEO Aditya Mittal said. “We are very pleased to be in partnership with the Government of Canada. As partners, we all recognize that it is vital to accelerate our reduction of carbon emissions and strengthen our climate action. Indeed, progress in the next decade is vital if the world is to reach net zero by 2050.”

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Canada’s investment will come from the Strategic Innovation Fund’s Net Zero Accelerator Initiative, which will invest $8 billion over seven years towards decarbonizing large GHG emitters in industries across the country. Previously, on July 5, the government announced a similar investment of $420 million in Algoma Steel’s facilities in Sault Ste. Marie, Ontario, to support the company’s transition to electric-arc furnaces.

The two projects combined, according to the announcement, will represent GHG savings of six million tonnes per year, equivalent to taking 1,800,000 cars off the road, or as many cars as there are in Montreal, Toronto and Vancouver combined. ArcelorMittal’s project is also expected to support up to 2,500 construction jobs through subcontracting.

“We are supporting our steelworkers and companies like ArcelorMittal Dofasco as they seize today’s opportunities in the low-carbon economy and they do their part in the fight against climate change,” said François-Philippe Champagne, minister of innovation, science and industry. “This investment will ensure that Canada’s largest producer of flat-rolled steel adopts innovative technologies, continues to provide economic opportunities for Canadian workers and contributes meaningfully toward our climate targets. This investment will create good jobs in communities like Hamilton and lead to clean Canadian-made products in the world for decades to come.”