ArcelorMittal Dofasco

[thistleclub]

Revisiting a story from three weeks back in anticipation of more time spent outdoors (and the upcoming court proceedings).

Dofasco facing 13 charges
(Hamilton Spectator, Meredith MacLeod & Matthew Van Dongen, Mar 28 2013)

The province has taken the rare step of charging ArcelorMittal Dofasco with repeatedly spewing excessive amounts of black smoke last summer.

The steelmaker faces 13 charges for exceeding visible pollution standards between April and August, according to the provincial Ministry of the Environment.

ArcelorMittal Dofasco declined to comment on the charges — the first of their kind laid against the company since local air emission regulations were updated in 2005.

“I’ve been working on this for 10 years and I’m not aware of another case of 13 charges being laid in court,” said Environment Hamilton executive director Lynda Lukasik.

She says her organization has been closely watching smokestack emissions from the plant since last summer, sending photos and documentation to the ministry on “almost a daily basis.”

The ministry revealed in January it was planning to issue an order against the steelmaker after more than 200 “opacity violations” were recorded as a result of emissions from aging coke ovens last year.

Opacity violations are lingering smoke plumes that are hard to see through. An exceedance is recorded when there’s a pollution plume that lasts more than six minutes with an opacity of more than 20 per cent.

Ministry spokesperson Jennifer Hall said Wednesday the charges are not meant to replace the preventive order, which should be issued this spring. That order will outline required repairs or changes to company equipment.

Lukasik says it has been a challenge to get the environment ministry to pursue charges, though the ministry’s abatement branch has started auditing emissions at the steelmaker.

The well-known activist was interviewed by ministry investigators about emissions on Oct. 21, when she says the company’s fan system and its backup failed.

Lukasik says the blackness of the smoke indicates higher levels of particulates, which can be inhaled and can lead to respiratory ailments.


Related:

'What have we been exposed to over the years?'
(Hamilton Spectator, Eric McGuinness, Dec 17, 2009)

+

Particulate Air Pollution and Inheritable Mutations in Mice: Possible Health Effects?
(Discovery Medicine, June 18 2009)

Germ-line mutations, DNA damage, and global hypermethylation in mice exposed to particulate air pollution in an urban/industrial location
(Proceedings of the National Academy of Sciences of the USA, Nov 20 2007)

Reduction of Particulate Air Pollution Lowers the Risk of Heritable Mutations in Mice
(Science, May 14, 2004)

Air pollution induces heritable DNA mutations
(Proceedings of the National Academy of Sciences of the USA, Oct 28 2002)

[Dr Awesomesauce]

Heavy industry is a nasty business.

I've always secretly hoped for its demise in this city, though it would devastate the economy, not to mention put some of my friends out of work.

It just doesn't belong in a city.

[thistleclub]

Signs of a Turnaround at Steel Giant ArcelorMittal
(New York Times, Stanley Reed, Nov 7 2013)

LONDON — ArcelorMittal, the world’s largest steel maker, on Thursday reported a narrower loss than a year earlier, as an improving world economy helped offset persistent problems in Europe.

The company said Thursday that it had a net loss of $193 million in the third quarter, a substantial reduction from the $652 million the company lost in the same period last year. Earnings before interest, taxes, depreciation and amortization — or Ebitda, a metric followed closely in the steel industry — increased by 19 percent to $1.7 billion, and steel shipments rose 6 percent, although revenue declined slightly to $19.6 billion.

“It’s a better-than-expected result, and I think the market will find it very encouraging,” said Jeff Largey, an analyst at Macquarie in London, he said by email. “North American business and mining business continue to do very well and more than offset seasonally weak European market.”

The company’s shares rose 3.9 percent in Amsterdam on Thursday.

The weakest area for the Luxembourg-based company continues to be Europe, where it has the most production and employees. The European unit that supplies flat steel to automakers and other customers lost $174 million, but that was an improvement over a $385 million loss a year earlier. The company is trimming its losses by closing some plants, including blast furnaces in Florange in France. But it still lost $26 per metric ton of steel it made in Europe in the quarter.

The Americas, where ArcelorMittal is also one of the market leaders, was a healthier region than Europe. Sales in the key flat steel division were up about 2 percent from a year ago to $4.9 billion while Ebitda rose 68 percent to $547 million.

Mining, the main activity in which ArcelorMittal has been investing while steel has been in the doldrums, reported a 35 percent increase in Ebitda to $533 million. One of the distinguishing features of ArcelorMittal is that it has large iron ore and other mining operations, which give the company some protection from fluctuations in the prices of raw materials.

‘'We believe the bottom of the cycle is behind us,” Lakshmi Mittal, the company’s chief executive, said in a statement. “As economic indicators are improving, we are cautiously optimistic about the prospects for 2014.”

[SteelTown]

Steelmaker’s coke ovens to get $87-million overhaul

http://www.thespec.com/news-story/43...lion-overhaul/

ArcelorMittal will spend $87 million to upgrade its aging coke oven battery.

The project was announced to employees Friday, along with the best performance payout they've received since 2004.

Following the release of the parent company's quarterly and year-end financial results this morning, local workers were updated on their profit-sharing payments for the year, capital projects at the plant and the new investment.

The company does not release local financial results, but ArcelorMittal's Flat Carbon Americas division, which includes the Hamilton plant, reported a good year.

The division closed out 2013 with an operating profit of $1 billion US, up from $852 million last year. Production was up to 23.9 million tonnes compared to 22.3 million last year and average selling prices rose to $854 per tonne compared to $818.

Operating income per tonne also rose to $45 per tonne compared to $38 last year.

[ScreamingViking]

Nice to see them making that investment.

Hopefully it will help reduce some of the pollution issues they've had.

[thistleclub]

The story has been expanded this morning:

This is part of our continual investment effort," said company spokesperson Tony Valeri. "It will improve the efficiency of our production and improve our environmental performance as well."

Valeri said the project will involve repairs and improvements to the flues and linings of the company's No. 2 and 3 batteries, helping to sharply reduce sooty emissions that have angered neighbours and landed the company in court on 13 environmental charges.

The steelmaker was charged last March with repeatedly spewing black smoke into the air, exceeding pollution standards more than 200 times. The next court appearance on those charges is set for March 27.

While the investment won't result in new jobs, Valeri said it adds to the security of the company's 5,200 current employees.

The oldest of the coke batteries is to be shut down in March 2015. ArcelorMittal Dofasco has already spent $175 million since 2010 updating its coke operations, including monitoring systems, emissions cameras, and repairs and rebuilds to ovens.

Coke is produced by heating coal in a series of ovens until it becomes a carbon mass used in blast furnaces to make iron.

The hope for cleaner air in the east end was warmly welcomed by Councillor Sam Merulla and Pat Thiessen, a member of the ArcelorMittal Dofasco Community Liaison Committee.

The steel plant is in Merulla's ward and Thiessen lives within sight of the factory.

"I applaud this investment of nearly $100 million not only from the economic development viewpoint but from the social mitigation standpoint as well," Merulla said.

"This is going to lead to a renewed and positive relationship with ArcelorMittal Dofasco."

For Thiessen, the new investment continues a company effort that is helping to clear the air in her neighbourhood.

"We still get a certain amount of fallout but it's a lot better than what it was," she said.

"I would call this investment very good news."

Employees were also told Friday they'll be getting the largest payouts they've seen since 2004 under the company's profit-sharing and variable compensation plans — averaging almost $20,000 each.

In addition to the coke oven upgrades, employees were also told Friday two other major investments in the plant will be completed this year — the $153-million Number 6 galvanizing line and the $33-million temper mill.

Combined, that's an investment of $273 million.


Should help blunt the force of the pending emissions case against the company.

Now to solve the pension problem.

[Dr Awesomesauce]

Originally Posted by thistleclub

"We still get a certain amount of fallout but it's a lot better than what it was," she said.

This pretty much sums up the situation for me.

[thistleclub]

An iron will is needed to back the steel makers
(The Independent, Jim Armitage, Feb 27 2014)

Warren Buffett advises investors to be fearful when others are greedy, and greedy when others are fearful. It's stood him in good stead – the $5bn (£3bn) he spent bailing out Goldman Sachs during the terror of the financial crisis in 2008 is set to bank him a $2bn profit.

In the case of ArcelorMittal, some investors have clearly been acting on his mantra. Despite a recent dip, its shares have gained 17 per cent in the past six months. But it must have taken some serious greed to overcome the fear. The "risks" section of its annual report out yesterday neatly collates some pretty scary facts about the global steel market.

Try this: European steel-producing capacity outstrips demand by 40 per cent. Demand from European industrialists is nearly a third below the 2007 peak. China has built so many steel mills in recent years that, having been importing for decades, it now finds itself also producing way more than it needs. That means it has become a hefty exporter of steel, driving global prices even lower.

It's not just demand for the stuff that's terrifying, but the cost of making it too. Steel's raw materials – iron ore, coke and the like – bounce around insanely. Iron ore went from $160 a tonne last February to $110 in May. It then bounced back up 30 per cent before plunging again to below $120 today. Pity the folks attempting to make a business plan around that mess.

Read it in full here.

[SteelTown]

Province gives $40 million to ArcelorMittal Dofasco energy-saving efforts

http://www.thespec.com/news-story/69...aving-efforts/

ArcelorMittal Dofasco is receiving $40 million in government grants and incentives for energy upgrades that the company says will save enough electricity annually to power 19,000 homes.

The technology being developed uses surplus steam and steam converted from waste gases that when fully operational will generate 170,000 MWh of annual electricity savings, the company says.

Glenn Thibeault, Minister of Energy, was in Hamilton Monday to announce the development, saying, "Our government supports a dynamic and innovative business climate in which companies can reduce electricity costs by implementing a variety of conservation and efficiency measures."

Sean Donnelly, President and CEO of ArcelorMittal Dofasco says the government grants "allowed us to accelerate our plans and move various projects forward in order to lower our demand on Ontario's power grid, keep our business competitive and contribute to the reduction of Canada's greenhouse gas emissions."

The announcement comes at a time when the Wynne Government is under fire for skyrocketing electricity costs across the province.

There are two projects at ArcelorMittal Dofasco receiving provincial support:

• The first initiative – called the Turbo Generator 2 project -- has been in service since April 1 of this year. It's a $15-million upgrade that received a $10-million grant from the provincial fund known as the Industrial Accelerator Program. The company says the project is creating 41 jobs annually and is anticipated to result in 49,000 MWh of annual electricity savings.

• The second initiative – called the Utilities Boiler and Power Generation project – is currently being built to go into operation at the end of 2018. It's a $112-million project that will receive a $30-million incentive from the Independent Electricity System Operator (IESO), which monitors and co-ordinates Ontario's power supply. The project estimated to create 40 jobs annually and is anticipated to result in about 129,000 MWh of annual electricity savings.

[Dr Awesomesauce]

Sure. Why not?

[BaconPoutine]

Why?

Isn't total hydro demand in Ontario falling? (source: http://www.ieso.ca/Pages/Power-Data/Demand.aspx)

And isn't part of the reason for increasing hydro costs because demand is falling and the province is locked into contracts for a fixed amount of generating capacity? So any drop in demand doesn't affect the total amount supplied and paid for, resulting in an increased price per kwh?

Do I misunderstand this issue?

Because this looks like paying $40 million for something that will increase our hydro bills....

[NortheastWind]

Originally Posted by BaconPoutine

Why?

Incentives to large corporations helps them be competitive, which at the end of the day is good for the job market.

[ScreamingViking]

Should be great news for local air quality too, not just GHG emissions.

I don't know much about the technology... but if it uses scrap metal, doesn't someone still have to make some steel the traditional way? Will AM Dofasco still do that, just in smaller quantities? I mean, there's plenty of steel scrap around, but enough to supply our entire industry? Or do they intend to import from other plants in AM's network?


Feds announce $400M to cut greenhouse gas emissions at ArcelorMittal Dofasco
CEO says changes will result in a 60% drop in CO2 emissions in the next 7 years

https://www.cbc.ca/news/canada/hamil...ment-1.6123829

Saira Peesker
CBC News
Jul 30, 2021





The federal government has announced $400 million for a project at ArcelorMittal Dofasco that the company says will cut its carbon emissions by more than half.

Deputy Prime Minister Chrystia Freeland, along with Innovation Minister François-Philippe Champagne and Minister of Labour, Filomena Tassi, made the announcement at the Hamilton steelmaker on Friday.

The government said its investment is part of a $1.765-billion project to phase out coal-fired steelmaking and is expected to reduce greenhouse gas emissions by up to three million tonnes per year by 2030.

"This investment will ensure that Canada's largest producer of flat-rolled steel adopts innovative technologies, continues to provide economic opportunities for Canadian workers and contributes meaningfully toward our climate targets," Champagne stated in a media release.

"This investment will create good jobs in communities like Hamilton and lead to clean Canadian-made products for the world for decades to come."

The project depends on funding from the provincial government as well, according to Tony Valeri, Dofasco's vice president corporate affairs. He said those discussions are ongoing and have been "positive," noting he expects they'll continue following the federal announcement.

It comes after Prime Minister Justin Trudeau announced $420 million for a similar project at Algoma Steel in Sault Ste. Marie earlier this month.

At the time, Trudeau teased a similar announcement would soon be made in Hamilton.

The funding for Dofasco comes from the Strategic Innovation Fund and its Net Zero Accelerator.

The government said the combined reductions in greenhouse gases from both projects will lower emissions by up to six million tonnes a year.

That's the equivalent of taking 1.8 million vehicles off the road, "almost the number of passenger vehicles in Toronto, Montréal and Vancouver combined," according to the release.

Aditya Mittal, CEO of ArcelorMittal, described said the announcement marks the "beginning of a new era of steelmaking in Hamilton that will result in a 60% drop in CO2 emissions within the next seven years."

The goal is to have the project completed by 2028 and Mittal said he looks forward to the provincial government "stepping up."

Dofasco intends to use the funds to transition to a electric arc furnaces, which use scrap metal, electricity and natural gas to make steel, as opposed to blast furnaces, which use coal and iron ore.

In advance of the announcement, company spokesperson Marie Verdun called decarbonized steelmaking "central to ArcelorMittal's long-term strategy." She pointed out the company has already started efforts on this front in its European operations.

"We're making a difference today," said Champagne, adding the investment secures the steel industry and Dofasco's presence in Hamilton for generations to come.

[ScreamingViking]

Here's the Speculator's version. It says something about processing iron ore without coal, so I guess the new furnaces will do both primary steel-making and recycling of scrap.

Hopefully the province kicks money in too, but regardless of that I bet it's worth AM-D's investment to avoid being tagged for future environmental costs and taxes.


Federal government offers ArcelorMittal Dofasco $400 million for dramatic steelmaking overhaul

https://www.thespec.com/news/hamilto...-overhaul.html

Matthew Van Dongen
The Hamilton Spectator
Fri., July 30, 2021

The federal government is offering $400 million to ArcelorMittal Dofasco for a dramatic steelmaking overhaul designed to slash carbon emissions — and end the use of polluting coal altogether by 2028.

The catch: the steelmaker says the project is contingent on both federal and provincial cash for the $1.8 billion overhaul.

The project would add a new electric arc furnace and upgrade facilities to process iron ore without the use of coal and aging coke plants and blast furnaces plagued by regular pollution incidents.

It would also set the stage for a hoped-for future transition to “green hydrogen”-fuelled steelmaking.

It’s not yet clear how quickly the project will go ahead, given the steelmaker is still seeking more funding help.

But the company says ideally, it is aiming to phase out coal-fired steelmaking by 2028.

That would cut the steelmaker’s greenhouse gas emissions by three million tonnes annually — or more than a quarter of all yearly carbon emissions in Hamilton.

It would also allow Hamilton residents to breathe easier if infamously polluting coke plants and blast furnaces are shut down.

More to come.

[Innsertnamehere]

This is a huge deal even just for local air quality - it should go a long way in reducing smog days in the lower city. Hamilton is one of the few places in the country that still has regular issues with that.

Also of note - this project will reduce the City of Hamilton's emissions by about 30%. Apparently the entire city emits about 11 million tons of emissions annually, this alone will reduce that by about 3 million.

The $1.7 billion investment is also a ridiculously large project for a private company. That is an absolutely insane investment and will lead to a boon of construction jobs in the city while it happens.

[ScreamingViking]

It should also alleviate the gritty soot from black clouds of pollution spewed by the old blast furnaces that has so often rained down on homes near the mills and along the Beach Strip, whenever Dofasco has one of their incidents.

CBC wrote about it in May, re: fines for that: https://www.cbc.ca/news/canada/hamil...tion-1.6039684

[Dr Awesomesauce]

Originally Posted by ScreamingViking

It should also alleviate the gritty soot from black clouds of pollution spewed by the old blast furnaces that has so often rained down on homes near the mills and along the Beach Strip, whenever Dofasco has one of their incidents.

CBC wrote about it in May, re: fines for that: https://www.cbc.ca/news/canada/hamil...tion-1.6039684

Used to get it at Marina Towers back in the day - a fine layer of something nasty and black all over the balcony. Scary $h*t...

[SteelTown]

A lot of their property is storing coal. So that will be a lot of available lands soon in the future.

I imagine when they dig the final coal off the property, the fine particles of coal will blow everywhere. So watch out.

[ScreamingViking]

Originally Posted by SteelTown

A lot of their property is storing coal. So that will be a lot of available lands soon in the future.

I imagine when they dig the final coal off the property, the fine particles of coal will blow everywhere. So watch out.

Perhaps more land will be available for industrial redevelopment or port use then, if AM Dofasco has no plans for it. Sell it to help fund the improvements to their Hamilton operation.

I would hope they'll mitigate that coal dust issue. All it would take is water and run-off collection. They must do something like that now?

The city won't want a repeat or similar event to what happened when that old industrial building was demolished.

[craftbeerdad]

While I'm glad this will improve the air quality for the lower city and surrounding areas and transition to a cleaner process, it's a bit bizarre that a foreign entity received this large financial injection.