HAMILTON — The federal government says it is investing $400 million in a Hamilton-based steel producer to help it adopt low-carbon technology.
The Ministry of Innovation, Science and Economic Development says the investment will support ArcelorMittal Dofasco’s $1.7 billion project to phase out coal-fired steelmaking at it’s facilities.
The government says the company is the country’s largest producer of flat-rolled steel and the largest private-sector employer in Hamilton.
It said the project would reduce greenhouse gas emissions by up to 3 million tons per year by 2030.
The announcement comes after Algoma Steel — a Sault Ste. Marie, Ont., based steel manufacturer — received $420 million from the federal government earlier this month to transition their steelmaking process to using electric furnaces.
The government says the combined impact on greenhouse gas emissions would be equivalent to taking 1.8 million cars off the road.
“Our government has been steadfast in defending and championing our steelworkers,” said Deputy Prime Minister and Minister of Finance Chrystia Freeland in a statement.
“Today’s announcement… 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. We will continue to be there to support growth and a strong economic future for our steelworkers and all the people of Hamilton.”
Canada’s minister of labour, Filomena Tassi, said the new project will also create 2,500 new jobs and support up-skilling opportunities for existing workers.
The government says the Algoma Steel and ArcelorMittal Dofasco projects will reduce national Canadian greenhouse gas emissions by one per cent.