Algoma Steel Awards Contract to GE to Provide Gas Turbines to Support Power Requirements of Electric Arc Steelmaking Transition
27 Januar 2022 - 11:30PM
Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma Steel”
or “the Company”), a leading Canadian producer of hot and cold
rolled steel sheet and plate products, today announced that it has
awarded GE Gas Power (NYSE: GE) 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 (“EAF”) 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.
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. At full capacity,
the refurbished cogeneration facility is designed to have the
ability to generate 110 MW of electricity, up from its current
capacity of 34 MW.
Cautionary Statement Regarding
Forward-Looking Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively, “forward
looking statements”), including statements regarding Algoma’s
planned investment in EAF steelmaking, reduction in carbon
emissions and role as a leader in green steel, the timeline for the
completion of the cogeneration facility refurbishment and the
commissioning of the EAF, and the expected capacity of the
refurbished cogeneration facility. These forward-looking statements
generally are identified by the words “believe,” “project,”
“expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “plan,” “pipeline,” “may,” “should,” “will,”
“would,” “will be,” “will continue,” “will likely result,” and
similar expressions. Forward-looking statements are predictions,
projections and other statements about future events that
are based on current expectations and assumptions. Many factors
could cause actual future events to differ materially from the
forward-looking statements in this document, including but not
limited to: the risk that the benefits of the recently completed
merger may not be realized; the risks that Algoma will be delayed
or unable to realize its business plans and strategic objectives,
including its investment in EAF steelmaking and the corresponding
reduction in carbon emissions; the risks that higher cost of
internally generated power and market pricing for electricity
sourced from Algoma’s current grid in Northern Ontario could have
an adverse impact on our production and financial performance; the
risks associated with the steel industry generally; and changes in
general economic conditions, including as a result of the COVID-19
pandemic. The foregoing list of factors is not exhaustive and
readers should also consider the other risks and uncertainties set
forth in the section entitled “Risk Factors” and “Cautionary Note
Regarding Forward-Looking Statements” in the prospectus filed by
Algoma with the Ontario Securities Commission (available under the
company’s SEDAR profile at www.sedar.com) and in the registration
statement on Form F-1 filed by Algoma with the Securities and
Exchange Commission (available at www.sec.gov). Forward-looking
statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements,
and Algoma assumes no obligation and does not intend to update or
revise these forward-looking statements, whether as a result of new
information, future events, or otherwise.
About Algoma Steel
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. With a current
raw steel production capacity of an estimated 2.8 million tons per
year, Algoma’s size and diverse capabilities enable it to deliver
responsive, customer-driven product solutions straight from the
ladle to direct applications in the automotive, construction,
energy, defense, and manufacturing sectors. Algoma is a key
supplier of steel products to customers in Canada and Midwest USA
and is the only producer of plate steel products in Canada.
Algoma’s mill is one of the lowest cost producers
of hot rolled sheet steel (HRC) in North America owing in
part to its state-of-the-art Direct Strip Production Complex
(“DSPC”), which is the newest thin slab caster in North America
with direct coupling to a basic oxygen furnace (BOF) melt shop.
Algoma has achieved several meaningful
improvements over the last several years that are expected to
result in enhanced long-term profitability for the business. Algoma
has upgraded its DSPC facility and recently installed its No. 2
Ladle Metallurgy Furnace. Additionally, Algoma has cost
cutting initiatives underway and is in the process of
modernizing its plate mill facilities.
Today Algoma is on a transformation journey,
investing in its people and processes, optimizing and modernizing
to secure a sustainable future. Our customer focus, growing
capability and courage to meet the industry’s challenges head-on
position us firmly as your partner in steel.
For more information, please contact:
Brenda StentaManager Communications & BrandingAlgoma Steel
Inc.Phone: +1.705.206.1022E-mail: brenda.stenta@algoma.com
About GE Gas Power
GE Gas Power is a world leader in natural gas
power technology, services, and solutions. Through relentless
innovation and continuous partnership with our customers, we are
providing more advanced, cleaner and efficient power that people
depend on today and building the energy technologies of the future.
With the world’s largest installed base of gas turbines and more
than 670 million operating hours across GE’s installed fleet, we
offer advanced technology and a level of experience that’s
unmatched in the industry to build, operate, and maintain leading
gas power plants. For more information, please visit
www.ge.com/power/gas and follow GE’s gas power businesses on
Twitter and LinkedIn.
For more information, visit the company's
website at www.gepower.com. Follow GE Power on
Twitter @GE_Power and on LinkedIn at GE
Power.
For more information, contact:
Laura AresiPublic Relations LeaderGE Gas
Power+39 335 6978871laura.aresi@ge.com
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