In a statement, ArcelorMittal said the facility will transition to the direct reduction–electric arc furnace route, with the intended investments reducing CO₂ emissions by 60% within seven years. 

At the heart of the plan is a 2 million metric ton DRI plant and an EAF-based meltshop capable of producing 2.4 million metric tons per year through its existing secondary metallurgy and secondary casting facilities. 

“Modification of the existing EAF facility and continuous casters will also be undertaken to align productivity, quality and energy capabilities between all assets in the new footprint,” the company said. 

The new DRI and EAF are to enter service before the end of 2028, ArcelorMittal said. 

The investment is contingent on support from the Canadian government and Ontario’s provincial government. The Canadian government is committing CA$400 million to the project; talks are ongoing with the Ontario government. 

“This is the first significant decarbonization project we have announced outside Europe and again reflects ArcelorMittal’s determination to lead the decarbonization of the steel industry,” said ArcelorMittal chief executive Aditya Mittal. 

“Across the company our people are highly motivated to demonstrate that steel can reach net zero and will be the core material for a carbon-neutral world. This project in Dofasco is a very significant and important milestone in this journey.”