Algoma Steel Selects Danieli as Technology Provider for New Electric Arc Steelmaking Facility
December 02 2021 - 06:30AM
Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the
Company”), a leading Canadian producer of hot and cold rolled steel
sheet and plate products, today announced that it has selected
Danieli & C. Officine Meccaniche S.p.A (“Danieli”) as the sole
technology provider for their new electric arc (EAF) steelmaking
facility.
After a rigorous review of world class
suppliers, Danieli’s proven AC-Digimelter technology powered by
Q-One digital power systems was determined to be the best choice
for Algoma’s needs as it transitions away from basic oxygen
steelmaking. The transformation is expected to reduce Algoma’s
carbon emissions by approximately 70%, positioning Algoma as one of
North America’s leading providers of green steel.
The new green steel shop will have a design
capacity of 3.7 million tons of liquid steel with two 250-ton
electric arc furnaces at its core, powered by two Q-One digital
power systems with a rated capacity in excess of 190 MVA each.
Q-One is a patented technology capable of continuously varying the
frequency during each of the melting phases, improving energy
efficiency and electrode consumption.
The new EAF will be designed to produce high
quality liquid steel from recycled steel scrap, with the option for
the direct addition of a wide range of other iron inputs. The new
technology is optimized for process quality, low operating costs,
and enhanced safety through the extensive application of
mechatronic technologies. The design also provides for
best-in-class environmental performance with engineered enclosures
encapsulating the two furnaces to minimize noise and emissions, and
the Q-Melt automatic process control delivering superior energy
efficiency. Two new off-gas treatment plants including baghouses,
and a dedicated recirculating water treatment plant will combine to
provide the leading technology for emission control and filtration,
and water conservation.
Rounding out the package, the facility design
includes an automated scrap yard featuring automatic cranes, scrap
visual recognition, and automatic scrap sorting and charging. A new
Danieli Twin-Tank Vacuum Degasser with an oxygen blowing facility
will also be added to the process route to deliver advanced grades
of steel and further enhance steel cleanliness and final product
quality.
The new electric arc facility is expected to be
in operation in early 2024.
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. With a current raw steel
production capacity of an estimated 2.8 million tons per year,
Algoma’s size and diverse capabilities enable it to deliver
responsive, customer-driven product solutions straight from the
ladle to direct applications in the automotive, construction,
energy, defense, and manufacturing sectors. Algoma is a key
supplier of steel products to customers in Canada and Midwest USA
and is the only producer of plate steel products in Canada. The
Company’s mill is one of the lowest cost producers of hot rolled
sheet steel (HRC) in North America owing in part to its
state-of-the-art Direct Strip Production Complex (“DSPC”), which is
the newest thin slab caster in North America with direct coupling
to a basic oxygen furnace (BOF) melt shop.
Algoma has achieved several meaningful
improvements over the last several years that are expected to
result in enhanced long-term profitability for the business. Algoma
has upgraded its DSPC facility and recently installed its No. 2
Ladle Metallurgy Furnace. Additionally, the Company has cost
cutting initiatives underway and is in the process of modernizing
its plate mill facilities.
Today Algoma is returning to its roots as a
customer-focused, entrepreneurial company with the courage and
growing capability to meet the industry’s challenges head-on. It is
investing in its people and processes, optimizing and modernizing
so that it might continue to be your partner in steel.
Danieli & C. Officine Meccaniche
S.p.A
Danieli is an industry-leading full cycle
provider from raw materials to finished products in the metals
industry.
Cautionary Statement Regarding
Forward-Looking Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively,
“forward-looking statements”), including statements regarding
Algoma’s planned EAF transformation and the anticipated technologic
features and benefits of the planned EAF design. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “pipeline,” “may,”
“should,” “will,” “would,” “will be,” “will continue,” “will likely
result,” and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions. Many
factors could cause actual future events to differ materially from
the forward-looking statements in this document, including but not
limited to: the risks that Algoma will be unable to realize its
business plans and strategic objectives, including its investment
in electric arc steelmaking, the timing thereof, the availability
of electric power and related reduction in emissions; the risks
associated with the steel industry generally; and changes in
general economic conditions, including as a result of the COVID-19
pandemic. The foregoing list of factors is not exhaustive and
readers should also consider the other risks and uncertainties set
forth in the section entitled “Risk Factors” and “Cautionary Note
Regarding Forward-Looking Statements” in Algoma’s public filings,
including the registration statement on Form S-1 filed by Algoma
with the Securities and Exchange Commission and the prospectus
filed with the Ontario Securities Commission. Forward-looking
statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements,
and Algoma assumes no obligation and does not intend to update or
revise these forward-looking statements, whether as a result of new
information, future events, or otherwise.
Media Contacts:
Marco SattoloDanielim.sattolo@danieli.com
Brenda Stenta Algoma Steel Group
Inc.brenda.stenta@algoma.com
Algoma Steel (TSX:ASTL)
Historical Stock Chart
From Feb 2024 to Mar 2024
Algoma Steel (TSX:ASTL)
Historical Stock Chart
From Mar 2023 to Mar 2024