Algoma Steel Selects Danieli as Technology Provider for New Electric Arc Steelmaking Facility

SAULT STE. MARIE, Ontario (GLOBE NEWSWIRE) — 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, 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.