The Ontario Energy Board (OEB) has given the green light to the Sault Ste. Marie PUC to construct a beefed-up new transmission line and transformer station in the city’s west end to feed power to Algoma Steel’s electric arc furnaces (EAF).
Construction of a new 230 kilovolt transmission line will start in 2025 and be finished in 2027, according to an Aug. 28 news release from the local utility.
"This project is a critical step in ensuring a resilient and sustainable energy future for our region,” said Rob Brewer, president-CEO of PUC Transmission LP, in a statement of the OEB approving their Leave to Construction application.
“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 Transmission LP is a spinoff company of the Sault PUC tasked to build this power line to the steel plant. The proposed 14-kilometre long line would be strung between Hydro One’s transformation station on Third Line to a new transformer station at the furnace site.
The project represents a $190-million investment by the PUC.
The PUC said the new line and station will improve system reliability in the city’s west end and fulfill the Algoma Steel’s power requirement of 280 megawatts for its two electric arc furnaces, a $825-million project that’s now under construction.
Algoma begins its transition from blast furnace steelmaking to modern EAF technology next year. As more regional grid power, the North Shore Link Project, comes online in northeastern Ontario by 2029, Algoma expects to wean itself off of the old steelmaking technology and reach its top-end three million-ton mark in steel production.
The PUC said the project “has undergone rigorous environmental and technical assessments to ensure it meets all regulatory requirements and aligns with community interests.”
The PUC pledges ongoing dialogue with the community during various construction phases to keep residents and impacted homeowners up to date on progress.
Algoma Steel CEO Mike Garcia congratulated the PUC on the regulatory approval.
“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,” Garcia said in a release.
