SAULT STE. MARIE, ONT. —The Canada Infrastructure Bank (CIB) and Algoma Steel have announced an agreement on financing of upgrades to Algoma’s steelmaking processes at its facility in Sault Ste. Marie, Ont.
Under the terms of the agreement, the CIB will provide $220 million in financing towards the $700-million upgrade of Algoma’s electric arc furnace, a recent release stated.
A year ago, Algoma’s board of directors authorized the construction of two new electric arc furnaces to replace Algoma’s existing basic oxygen steelmaking operations.
The CIB financing will enable Algoma to purchase new equipment to facilitate the upgrade, which is expected to cut greenhouse gas emissions by approximately 70 per cent.