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Danieli to supply technology for Algoma Steel’s new EAF steel mill

The mill will have a nameplate capacity of 3.7 million tons of liquid steel with two 250-ton EAFs.

December 2, 2021

Algoma Steel Group Inc., which produces hot- and cold-rolled steel sheet and plate products, says it has selected Danieli & C. Officine Meccaniche S.p.A., headquartered in Italy, as the sole technology provider for its new electric arc (EAF) steelmaking facility. 

In November, Algoma’s board of directors authorized the construction of two new EAFs to replace Algoma’s existing blast furnace and basic oxygen furnace (BOF) operations. Algoma signaled its intention to switch to EAF capacity in May when it was acquired by New York-based Legato Merger Corp., a special purpose acquisition company (SPAC).

Nov. 30, Sault Ste. Marie, Ontario-based Algoma announced that it had reached an agreement with the Canada Infrastructure Bank (CIB), which will provide Algoma with up to $172 million in financing toward the conversion from BOF production to scrap-fed EAF production. The conversion is expected to cost roughly $550, Algoma says.

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The steelmaker says it determined that Danieli’s AC-Digimelter technology powered by Q-One digital power systems was the best choice for its needs. The transition to EAF steel production is expected to reduce Algoma’s carbon emissions by approximately 70 percent.

The mill will have nameplate capacity of 3.7 million tons of liquid steel with two 250-ton EAFs at its core, powered by two Q-One digital power systems with a rated capacity in excess of 190 million volt-amps each. Q-One is a patented technology that can continuously vary the frequency during each of the melting phases, yielding improvements in energy efficiency and electrode consumption, the company says.

The new EAF will be designed to produce high-quality liquid steel from recycled steel scrap, Algoma says, 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 by applying mechatronic (the integration of mechanical, electronic and electrical engineering systems) technologies. The design also provides for best-in-class environmental performance with engineered enclosures around the two furnaces to minimize noise and emissions, and the Q-Melt automatic process control delivering energy efficiency. Two new off-gas treatment plants including baghouses, and a dedicated recirculating water treatment plant will conserve water.

The facility design includes an automated scrap yard featuring automatic cranes, scrap visual recognition and automatic scrap sorting and charging, the company says. A new Danieli Twin-Tank Vacuum Degasser with an oxygen blowing facility also will be added 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, Algoma says.