Is Charcoal the Key to Algoma Steel’s Future Success?
Sault Ste. Marie is considering a partnership with local forestry companies to produce biochar for Algoma Steel’s electric arc furnaces. Biochar, a type of charcoal, is created from processed plant material in a low-oxygen setting. Ward 5 Councillor Corey Gardi emphasized that utilizing biochar could significantly enhance Algoma Steel’s efforts to decarbonize its operations.
Decarbonization and Electric Arc Furnaces
At a recent city council meeting, Gardi stated, “The province is literally waiting to fund a large-scale biochar deployment in a city with both a steel mill and forestry residue.” He highlighted the multiple advantages of using biochar in electric arc steelmaking, including:
- Acting as a foaming agent to protect the arc
- Replacing coke or anthracite as a carbon source
- Improving slag dynamics
- Increasing steel yield
- Reducing CO₂ emissions
Support from Provincial Initiatives
According to Ontario’s 2025 Interim Report on the Forest Biomass Action Plan, biochar is identified as a primary strategy for carbon reduction in steel production. Gardi noted that Algoma Steel is involved with the Canadian Iron & Steel Energy Research Association, which is examining biocarbon usage for electric arc furnace slag foaming.
Opportunities for Regional Biochar Production
Although Algoma Steel does not have its own biochar facilities, it could serve as a key customer for regional biochar producers, such as CHAR Technologies. This company has recently expanded its operations in Ontario, including locations in Espanola and Thorold.
Gardi mentioned that there are “tens of millions of dollars” available for biochar-related projects. Funding sources include the federal Indigenous Forestry Initiative. He stressed the importance of stimulating the local economy amid the city’s transition.
Impact of Industry Changes
The community is facing challenges due to the early closure of Algoma Steel’s blast furnaces, resulting in approximately 1,000 layoffs. Despite these difficulties, Gardi believes they are not the end of the city’s industrial narrative but rather the start of a new chapter.
During the city council meeting, members voted in favor of Gardi and Ward 1 Councillor Sonny Spina’s resolution to investigate biochar as part of various green economy initiatives. These initiatives include:
- Establishing a district energy network to capture local manufacturing waste heat
- Prioritizing green logistics in Sault Ste. Marie’s proposed port expansion
These efforts aim to facilitate the movement of bio-products and critical minerals essential for the electric vehicle supply chain.
