Steel Mills

ArcelorMittal Dofasco Breaks Ground on $1.8 Billion DRI-EAF Project

October 14, 2022

ArcelorMittal has broken ground on its $1.8 billion CAD ($1.3 billion USD) project to decrease the carbon intensity of its steelmaking. The ground-breaking ceremony comes just about a year after the Hamilton, Ontario-based steelmaker announced the initial federal subsidy granted for the investment.

ArcelorMittal

ArcelorMittal Dofasco, a subsidiary of multinational ArcelorMittal SA, is working towards decreasing its greenhouse gas emissions by replacing its coal-fed coke ovens and blast furnaces with a hydrogen-enabled electric arc furnace (EAF) and direct-reduced iron (DRI) technology.

The project was supported by contributions of $400 million CAD from Canada’s federal government and by $500 million from the Ontario provincial government. The investment plays an important role in ArcelorMittal’s target to reduce its steelmaking carbon intensity by 25% by 2030.

The new 2.5-million-ton capacity DRI furnace will initially operate on natural gas but will be constructed “hydrogen ready” so it can be transitioned to utilize green hydrogen when it becomes available, the steelmaker said. It is also expected to be the largest single-module direct reduction plant in Canada.

In attendance for the Oct. 13 event were ArcelorMittal Dofasco president and CEO Ron Bedard, Canadian Prime Minister Justin Trudeau, and ArcelorMittal Executive Chairman Lakshmi Mittal.

“By investing in ArcelorMittal Dofasco’s project to produce clean steel, we’re investing in the future of this plant and this industry,” said Prime Minister Trudeau.

“Today is a historic moment for our company. This is the first full-scale decarbonization project we have broken ground on since announcing our commitment to achieve net zero by 2050 and reduce carbon emissions intensity by 25% by 2030,” Mittal said.

ENERGIRON, the direct reduction technology jointly developed by Tenova S.p.A. and Danieli & C. S.p.A., has been chosen for the DRI project, the steelmaker said.

Onsite construction work will begin in January, with the demolition of the decommissioned No.1 coke plant planned to make room for the new DRI plant. Foundation work is set to start in 2024, and project completion is expected by 2026. The transition phase will begin with both steelmaking streams (BF-BOF and DRI-EAF) active. The transition is expected to be completed by 2028.

“This project provides us with a tremendous opportunity to transition ArcelorMittal Dofasco into one of the world’s cleanest, lowest carbon and modern steel manufacturers,” Bedard said. “While it involves installing new technology and equipment, the investment is really about people and the planet.”

The project also includes a 2.4-million-ton EAF to feed 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,” the company said.

Luxembourg-based ArcelorMittal has so far invested $5.6 billion in four such projects. The others are in Spain, Belgium, and France.

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.