By Ed Frankl
ArcelorMittal said Friday that it had agreed with the Canadian government to an investment of nearly $1.5 billion in decarbonization technology.
The investments, worth $1.765 billion Canadian dollars ($1.42 billion), would reduce carbon emissions at ArcelorMittal's Dofasco plant in Hamilton, Ontario, by around 60% before the end of 2028, the steel maker said.
ArcelorMittal said the investment is contingent on support from the governments of Canada and Ontario.
Canada's government said Friday that it will invest CAD$400 million in the project, and ArcelorMittal said it is in discussions with the government of Ontario regarding its support.
The plant will transition away from traditional blast-furnace steelmaking production route to a new method, called direct reduced iron-electric arc furnace, which carries a significantly lower carbon footprint, the Luxembourg-based company said.
The project is expected to support as many as 2,500 jobs during the engineering and construction phases, and support ArcelorMittal Dofasco's decarbonization ambitions, it said.
On Thursday, ArcelorMittal said it plans to invest $10 billion as part of a new carbon-emissions-reduction target it set for its global operations.
Write to Ed Frankl at firstname.lastname@example.org
(END) Dow Jones Newswires