HAMILTON, Ont.—Air Liquide S.A.’s Canadian unit announced plans to build a pipeline worth more than $12 million with the help of the province to ship oxygen to the ArcelorMittal Dofasco plant in Hamilton, Ont.
According to Air Liquide Canada, the new pipeline, which will be jointly funded with the province’s saveONenergy program, will be built between its air separation complex in the city and the nearby steel making plant.
The saveONenergy program is administered by the Ontario Power Authority (OPA) and Independent Electricity System Operator (IESO), which recently merged.
The pipeline will reduce Air Liquide’s energy consumption in Hamilton by 29,000 megawatt hours annually, according to the company, or the equivalent of about $2 million per year.
Air Liquide did not disclose how much money it was receiving for the project through the saveONenergy program.
“We are pleased that Air Liquide’s project has been selected for this critical grant,” ArcelorMittal Dofasco’s vice-president of procurement, Brian Benko, said in a statement. “Our supply chain, those organizations that play a role in our success including our customers and supply partners, are critical to our business.”
Benko went on to say the “pipeline project brings increased reliability and efficiency” to the two companies, and called it a “win” for Ontario.
According to Air Liquide, “a large part of purchased goods and services” for the project will be locally sourced from companies working in the Hamilton area.
Construction is slated to begin “as soon as final approvals are received” from the city, though it didn’t provide a timeline.
Commissioning is scheduled to begin in March 2015.