PUC gets OK to build massive new power line for Algoma Steel's electric arc furnaces

The Ontario Energy Board has approved an application by PUC to build a new transformer line and station that will service the west end — including Algoma Steel's soon-to-be operational electrical arc furnaces. 

"We are thrilled to receive this approval from the Ontario Energy Board," said Rob Brewer, the president and CEO of PUC Transmission LP, in a news release issued today. "This project is a critical step in ensuring a resilient and sustainable energy future for our region. Our partnership with Algoma Steel will result in significantly reduced carbon emissions as well as bolster our community’s economy for decades to come.”

Construction of the new 230kV transmission line is expected to start in 2025 and be completed in 2027.

"During the construction and implementation phase, the community will be kept up to date on progress and ongoing communication will take place with homeowners who have property impacted by the project," the news release states.

In a separate news release, Algoma Steel said "this achievement was driven by the combined efforts of PUC Transmission and Hydro One in their applications, as well as Batchewana First Nation and other supporting interveners."

“This milestone marks a significant advancement in enhancing Sault Ste. Marie’s power infrastructure, which is vital for supporting sustainable economic growth and our transformation to electric arc steelmaking — a key part of our commitment to environmental sustainability,” said Michael Garcia, Algoma Steel's president and CEO, in the release.

“Algoma Steel is proud to contribute to the sustainable development of Sault Ste. Marie and to support the future of green steel production in Ontario. We remain committed to delivering innovative and responsible steel solutions that benefit both the community and the environment.”

Below is the full news release from PUC:

Sault Ste. Marie (August 28, 2024) — The Ontario Energy Board (OEB) has approved PUC Transmission LP’s Leave to Construct application, paving the way for construction of a new 230 kV transformer line and transformer station that will service Sault Ste. Marie’s west end and play a critical role in supporting Algoma Steel Inc’s (ASI) transition from coal to electric arc furnaces in its steel making process.

"We are thrilled to receive this approval from the Ontario Energy Board," said Rob Brewer, President & CEO, PUC Transmission LP. "This project is a critical step in ensuring a resilient and sustainable energy future for our region. Our partnership with Algoma Steel will result in significantly reduced carbon emissions as well as bolster our community’s economy for decades to come.”

The new line and station will significantly improve system reliability to accommodate new loads in Sault Ste. Marie’s west end and the surrounding area, including the new load of approximately 280MW for the two new electric arc furnaces (EAFs) at Algoma Steel.

ASI’s planned new state-of-the-art EAFs are expected to reduce carbon emissions by 70 per cent - the equivalent of taking 1 million cars off the road. As a major employer in Sault Ste. Marie, ASI’s $825 million project will further strengthen its dominant role in the North American steel industry, supporting local jobs and the economy.

The project has undergone rigorous environmental and technical assessments to ensure it meets all regulatory requirements and aligns with community interests. With work now underway, PUC Transmission is committed to working closely with stakeholders, including Indigenous communities and municipal governments, to minimize impacts and maximize benefits throughout the process.

Construction of the new 230kV transmission line is expected to start in 2025 expediting efforts for completion in 2027. During the construction and implementation phase, the community will be kept up to date on progress and ongoing communication will take place with homeowners who have property impacted by the project.

Brewer noted that PUC Transmission’s investment of $190 million would not have been possible without the partnership of Axium Infrastructure Inc.

To review the OEB decision or for more information about the project, please visit https://puctransmissionlp.com.