Canadian Manufacturing

Algoma Steel awards contract to GE Gas Power for natural gas needs at its power plant

The upgrade is expected to supply Algoma Steel with sufficient internal generation capability to power phase one of its transition to electric arc furnace steelmaking.

January 28, 2022   by CM Staff

SAULT STE. MARIE — Algoma Steel Group Inc., a Canadian producer of hot and cold rolled steel sheet and plate products, announced that it has awarded GE Gas Power a contract for an upgrade to the Company’s natural gas combined cycle power plant, including the installation of two gas turbine packages. The upgrade is expected to supply Algoma Steel with sufficient internal generation capability to power phase one of its transition to electric arc furnace steelmaking.

Under the terms of the contract, GE will provide two LM6000 aero derivative gas turbines complete with new control systems as well as a new control system for the existing GE steam turbine. In addition, GE will also complete a full rewind on the No. 2 Generator. Local contractors from Sault Ste. Marie and area will be engaged for the equipment installation.

“Our transformation to EAF steelmaking and green steel products includes the upgrade of our internal electricity generation capacity, and we are pleased to partner with industry leader General Electric to complete this important milestone,” said Michael McQuade, Algoma’s Chief Executive Officer. “The project also reflects Algoma’s continued commitment to our community by engaging local contractors to support the installation.”

“We are proud to support Algoma in their energy transition program to help them become a leader in the production of steel with more efficient gas technologies and bring more flexible and lower-carbon power for their industrial process,” said Eric Gray, CEO of GE Gas Power for the Americas.

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Algoma Steel expects the project to be completed in the spring of 2023, a full year before the scheduled commissioning of the new electric arc furnaces.