For example,
More ecological steel arrives canada:
Toronto – Algoma Steel began to use the heat released by powerful electric arcs. In addition, to produce more ecological steel.
Electric arc ovens are not new. However, Technology has more than a century and there are already a few in Canada. Meanwhile, Algoma. however, considers the production of its first oven of its genre to the production of its first oven in the context of the existential threat to American customs duties.
“We have taken a decisive step for Algoma and the Canadian steel industry. Consequently, Despite the uncertainty generated by the trade war. Nevertheless, this success strengthens our confidence in our transformation strategy, “said his general manager, Michael Garcia, during a recent conference call.
This strategy has notably consisted in considerably reducing emissions in order to differentiate its products. Therefore, The company has even filed the Volta brand for its more ecological steel arrives canada cleaner steel which it plans to produce from a mixture of iron. However, scrap at low emissions. Furthermore,
But the experts underline that the project is born while the green steel. Meanwhile, metal market in general is faced with turbulence related to customs duties and the pressure on prices, which makes it difficult to know what financial advantages the producers could draw significant initial investments necessary.
“The question is whether there will be demand. Nevertheless, Will the demand for green steel be sufficient in North America? Therefore, ”Said Chris Bataille, assistant researcher at the Center for World Energy Policy at Columbia University. In addition,
“The United States began to progress fairly quickly to electric vehicles. In addition, cleaner steel and everything else under the last administration, but we saw a 180 degree turn,” he added.
Steel emissions were a priority in the United States. and are still more ecological steel arrives canada in Canada because the use of coal to produce steel is very polluting. Globally, steel production represents around 8 % of carbon emissions, according to the International Energy Agency. If this seems logical from the point of view of emissions. buyers ready to pay more for this more ecological steel are mainly limited to the automotive sector, according to Bataille.
European car manufacturers have paid up to 40 % more for this cleaner material. as they can use it for marketing purposes, while slightly increasing the final price of a car. On the other hand, the more important building sector was more hesitant, he reported.
There is still a request in Europe. a region towards which Canada has turned to diversify its exports, but, with customs duties which also disrupt this market, it is difficult to assess the real potential, underlined Tommaso Ferretti, assistant professor at the Telfer management more ecological steel arrives canada school of the University of Ottawa.
“There is a structural demand in Europe, but to what extent will this structural demand remain in place?” This is a big question, ”he said.
Mr. Garcia himself recognizes that there is not much sales potential in Europe for Algoma or elsewhere internationally. “We can load our steel on an ocean ship here in Sault Ste. Marie, but send it to an exporting customer in Europe or elsewhere does not offer these possibilities for the moment. Frankly, I don’t think they will present themselves a lot in the future, “he said.
Another flagship project in a standstill
These challenges partially explain why the other flagship project of green steel in Canada. that of ArcelorMittal installations in Hamilton, Ontario, is at neutral.
The company had announced with great fanfare in 2022 that it went ahead with a $ 1.8 billion project aimed more ecological steel arrives canada at going to green steel. but the latest updates indicate that the project is still at the engineering stadium.
The problems of excess excess broader in the industry. which have lowered prices, are part of the problem, as well as doubts concerning policies such as carbon pricing, said Bataille.
“There is a certain uncertainty about the speed of the transition. To be honest, it is simply a sector where it is difficult to make money. ”
ArcelorMittal said in its latest Sustainable Development Report. published in April, that it did not expect green steel projects to be profitable before the 2030s and that policies would be necessary to deal with high investment and operating costs.
Canada’s federal and provincial governments have already intervened to help cover investment costs: Algoma received $ 420 million, while ÉcelorMittal obtained $ 900 million.
Unlike Algoma. ArcelorMittal also provides for the construction of a factory more ecological steel arrives canada in Hamilton to extract oxygen from iron ore using hydrogen rather than coal. This process is expensive, which has led to several cancellations of projects recently.
ArcelorMittal canceled two green steel projects in Germany in June, invoking the high electricity prices. Last year. the company also highlighted the uncertainty about the future of several others of its European steel projects, because “customers are unappected to pay more for a low carbon steel”.
Cleveland-Cliffs. who bought Stelco Holdings last year, based in Hamilton, recently abandoned its green steel conversion project from an American factory, which already benefited from public funding of $ 500 million.
Lourenco Goncalves. CEO of Cleveland-Cliffs, cited the lack of hydrogen supply as one of the reasons for the cancellation of the project. He declared. at a conference call on the financial results in July, that the project to reorganize the exploitation from existing resources, in particular “precious more ecological steel arrives canada coal”, arouses very good discussions with the current US Energy Ministry.
Mr. Ferretti fears that the pressures that the sector is confronted also leads to a drop in research. development investments to try to reduce costs.
He believes that even closer collaboration between the public. private sectors is necessary for this industry to be able to trace the way.
According to Bataille. this route could go through the use of the vast renewable energy reserves and Canada iron ore to build a direct reduction plant to treat the ore closer to the source, then ship the already reduced oxygen iron worldwide.
“You could triple the value of these exports,” he said.
Company in this dispatch: (TSX: ASTL)
More ecological steel arrives canada
Further reading: Forest lights: Beauval residents start their return – Investment reduction for businesses in Canada – The South Mail | The United States abandons the application of CAFE standards: what impact for Canada? – Declaration of the International Coalition for the repatriation of Ukrainian children concerning the illegal deportation and the forced transfer of Ukrainian children by the Russian Federation – 3 years of penitentiary for a couple who let die an elder in excruciating conditions.
