In a statement, Canadian officials said the funding, which comes from the country’s Low Carbon Economy Fund, will support improvements to the tar removal and light oil recovery areas of the plant. Algoma estimates that the project will reduce greenhouse gas emissions by approximately 21,000 metric tons annually. 

"Algoma Steel has joined our Canadian peers in aiming to achieve net-zero carbon emissions by 2050. It is an ambitious but important goal, one that requires the support of governments, research partners, customers and our supply chain along the way. The tar-and-light-oil project brings us one step closer to that goal, and we could not have done it without the support of the government of Canada and the Low Carbon Economy Fund," said Algoma Steel chief executive Michael McQuade.