ArcelorMittal Dofasco quietly extends 'green' steel timeline from 2028 to 2050, gets $50M more from Ottawa

ArcelorMittal Dofasco has quietly extended its timeline by 22 years to phase out coal for "decarbonized" steelmaking, says a federal government document, aiming for 2050 instead of 2028.

Ontario’s largest emitter of greenhouse gases is also receiving $50 million more from the federal government for the project, according to an amendment posted to the Government of Canada's website last March.

It was posted after the U.S. first imposed tariffs on Canadian steel and shortly before the federal election.

The change brings Ottawa’s total contribution to $450 million. 

“The government has given the company a kind of loophole to continue its regular emissions for a much longer time,” said Evan Ubene with Environment Hamilton. 

ArcelorMittal Dofasco said in a statement it has extended the timeline but its "ambitions and intentions" have not changed. The additional $50 million is needed for a "technical configuration change in the [direct reduced iron] module plans."

Ubene said he happened to find the changes online, posted as an amendment, when searching for any sort of project update.

That's in stark contrast to the high-profile media events in 2022, initially announcing the transition.

Then, company officials, the prime minister and Ontario premier all told reporters Dofasco would decommission its blast furnaces and coke plants in place of direct reduced iron technology (DRI) and electric arc furnaces (EAFs) — all by 2028. 

The province and Dofasco also pledged money to the $1.8-billion project. 

Instead of relying on coal, the steel plant would be fuelled by natural gas and eventually hydrogen, reducing greenhouse gas emissions by 60 per cent, as well as harmful airborne pollutants, officials said in 2022.

The Ontario Ministry of Economic Development, Job Creation and Trade said Dofasco has spent none of the money the province has set aside for EAFs, totalling $500 million.

“We continue to work closely with ArcelorMittal Dofasco and companies across the steel sector to ensure they are positioned to take advantage of domestic opportunities and find new markets for made-in-Ontario steel," said spokesperson Christy Arnold.

Federal agency Innovation, Science and Economic Development Canada told CBC Hamilton it still expects Dofasco to transition from blast furnaces to EAFs and reduce emissions by three million tonnes a year — as originally planned.