ArcelorMittal Dofasco has silently prolonged its coal phase-out deadline for “decarbonized” steel production to 2050, a shift from the initial target of 2028, as revealed in a federal government document. The company has secured an additional $50 million from the government for the initiative, bringing the total federal contribution to $450 million. Evan Ubene from Environment Hamilton criticized this extension, suggesting that it allows the company to maintain regular emissions for an extended period.
ArcelorMittal Dofasco confirmed the timeline extension but emphasized that their goals and plans remain unchanged. The extra funding is designated for a technical adjustment in the direct reduced iron module plans. The update was discovered by Ubene online, posted as an amendment, contrasting the high-profile media announcements made in 2022 regarding the transition.
Initially, the plan involved decommissioning blast furnaces and coke plants at Dofasco by 2028 in favor of direct reduced iron technology and electric arc furnaces. The project, costing $1.8 billion, aimed to reduce greenhouse gas emissions by 60% by utilizing natural gas and eventually hydrogen instead of coal.
The Ontario Ministry of Economic Development, Job Creation, and Trade noted that Dofasco has not utilized the allocated $500 million from the province for electric arc furnaces yet. The federal government clarified that while DRI production will not occur at Dofasco, it will take place at ArcelorMittal’s facility in Quebec.
The amendment to the project details has raised concerns among observers like Ubene, who find the language vague and the project scope unclear. The lack of transparency regarding the changes and the potential impact on Hamilton’s air quality has sparked demands for more information and accountability from both Dofasco and the government.
Despite the ongoing efforts to cut greenhouse gas emissions, critics argue that relying on coal will hinder the project’s environmental objectives. Dofasco has stated that the decarbonization project is progressing cautiously due to external factors such as U.S. tariffs on Canadian steel. Community members like Jochen Bezner are calling for clarity and answers regarding the project’s future direction.