Steel Mills

Algoma: GE to Supply Turbines for New EAF

February 1, 2022

Algoma Steel Group Inc. has awarded GE Gas Power (GE) the contract to upgrade its natural gas combined cycle power plant to support the power requirements of the steelmaker’s new electric arc furnace (EAF).

Algoma The Sault Ste. Marie, Ontario-based steelmaker said the upgrade, which includes the installation of two gas turbine packages, is expected to supply Algoma with sufficient internal generation capability to power phase one of its transition to EAF steelmaking.

“Our transformation to EAF steelmaking and green steel products includes the upgrade of our internal electricity generation capacity, and we are pleased to partner with industry leader General Electric to complete this important milestone,” said Michael McQuade, Algoma’s CEO. “The project also reflects Algoma’s continued commitment to our community by engaging local contractors to support the installation.”

The switch from basic oxygen steelmaking to EAF is expected to reduce Algoma’s CO2 emissions by roughly 70% and position them as one of North America’s leading providers of green steel, the company said. The new facility is set for operation in early 2024.

GE will provide two LM6000 aero derivative gas turbines complete with new control systems as well as a new control system for the existing GE steam turbine. GE will also complete a full rewind on the No. 2 Generator.

The project is expected to be completed in the spring of 2023, roughly 12 months ahead of the EAFs’ scheduled commissioning, the company said. At full capacity, the refurbished cogeneration facility is designed to generate 110 MW of electricity, up from its current capacity of 34 MW.

The Canadian steelmaker is a fully integrated producer of hot and cold rolled steel products including sheet and plate. Current raw steel production capacity is estimated at 2.8 million tons per year, serving the automotive, construction, energy, defense and manufacturing sectors.

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.