Energy board approves new power line, station in the Sault

New power line & station approved in the Sault The Ontario Energy Board has approved a new transmission line & transformer station in the Sault allowing expansion at Algoma Steel.

The Ontario Energy Board has approved Sault Ste. Marie’s PUC Transmission LP‘s construction application, paving the way for them to build a new 230 kV transformer line and transformer station to service the city’s west end and support Algoma Steel’s 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 PUC Transmission, president and CEO Rob Brewer, in a news release.

“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.”

PUC officials said the new line and station will significantly improve system reliability to accommodate new loads in the city’s west end and the surrounding area – including the load for the two new electric arc furnaces at Algoma Steel estimated to be about 280MW.

The steel plant’s planned state-of-the-art electric furnaces are expected to reduce carbon emissions by 70 per cent, what the company said is the equivalent of taking 1 million cars off the road.

“The amount of energy that the electric arc furnaces need is massive,” said Brewer talking with CTV News on Wednesday.

“To put it in context, PUC distribution, which supports the entire city of Sault Ste. Marie, peaks at about 120MW. About the two EAF is going into Algoma requires 300MW -- two and a half times the entire city of Sault Ste. Marie.”

The $825 Algoma Steel project will further strengthen its dominant role in the North American steel industry while supporting local jobs and the local economy, said company officials.

“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 Algoma Steel CEO Michael Garcia.

“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.”

Officials with Algoma Steel said the new line was driven by the combined efforts of PUC and Hydro One in their applications, along with Batchewana First Nation and other supporting interveners.

“It underscores the strong commitment by the Province of Ontario to enable investment in critical infrastructure that underpins the economic growth of our city and region,” reads a news release by the steel fabricator.

“The collaboration between these organizations highlights dedication to ensuring that Sault Ste. Marie has reliable power needed to support both industrial advancement and community prosperity,” added Garcia.

“The project has undergone rigorous environmental and technical assessments to ensure it meets all regulatory requirements and aligns with community interests,” said PUC in the release.

“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 transmission line is expected to start in 2025 expediting efforts for completion in 2027.

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

Algoma Steel is not contributing any capital to the new line or transformer station.

PUC said the community will be kept up-to-date on the progress of the project during its construction and implementation phase through ongoing communication with homeowners and other stakeholders who have properties that will be impacted by the project.

The Ontario Energy Board’s full decision can be reviewed here.