Feds invest $400M to cut emissions at ArcelorMittal Dofasco in Hamilton

The federal government is making a $400-million investment to reduce carbon emissions at ArcelorMittal Dofasco in Hamilton.

Deputy Prime Minister Chrystia Freeland, made the announcement in Hamilton Friday morning alongside Innovation Minister François-Philippe Champagne and Minister of Labour, Filomena Tassi.

The investment is part of a $1.8-billion project to convert the steel production process and phase out coal-fired steelmaking.

The project will transition the Hamilton steelmaker to a hydrogen-ready, direct reduced iron–fed electric arc furnace. Officials say this will result in higher productivity, product quality, and energy efficiency at ArcelorMittal Dofasco.

“Our government has been steadfast in defending and championing our steel workers. Today’s announcement, through the Net Zero Accelerator, is about investing in the low-carbon transformation of Canadian industry, taking serious action in the global fight against climate change and supporting good middle-class jobs in Hamilton,” stated Freeland in a news release. “We will continue to be there to support growth and a strong economic future for our steel workers and all the people of Hamilton.”

ArcelorMittal CEO Aditya Mittal said the announcement represents a historic moment for the steelmaker and will result in a 60 per cent drop in CO2 emissions within the next seven years.

The company is Canada’s largest producer of flat-rolled steel and Hamilton’s largest private-sector employer.

Federal officials say the project will make a significant contribution toward Canada’s achieving its climate goals, reducing greenhouse gas emissions by up to 3 million tonnes per year by 2030.