ArcelorMittal Dofasco to demolish coke plant starting next year en route to halting coal use by 2028

A Hamilton skyline without smokestacks is getting closer to reality.

ArcelorMittal Dofasco shared details Thursday of the next steps of an unprecedented move to change how the company makes steel.

The plant is the biggest producer of flat-rolled steel in Canada and the single biggest industrial source of carbon dioxide (CO2) emissions in Ontario.

It's expected switching over to direct reduced iron-electric arc furnace steelmaking will cut carbon emissions from the plant by 60 per cent and completely remove coal from the process.

That will mean demolishing its decommissioned No. 1 Coke Plant in 2023 and starting construction on its new equipment. The construction should be done by 2026.

"Since the early '50s, variations of the stacks and equipment have dominated the Hamilton skyline behind me, and now that's all about to change," said Ron Bedard, ArcelorMittal Dofasco's president and chief executive officer.

The old technology, the blast furnace and basic oxygen furnace, will run at the same time as the new equipment and be ramped down over the course of two years.

The $1.8-billion investment, announced by the company last summer, is set to help in reducing three million tonnes — or 60 per cent — of carbon from the plant. The province is contributing up to $500 million, with the federal government investing another $400 million.

Bianca Caramento, acting general manager of Mohawk College's Centre for Climate Change Management, previously told CBC that is almost a 30 per cent reduction of Hamilton's emissions overall.

Green steel will make Hamilton a global leader: Trudeau

Prime Minister Justin Trudeau, who was at the Hamilton plant on Thursday, said the investment positions the city and the country as a leader in green steel.

It also gives Canada a "competitive advantage."

"It's not happening in Europe, it's certainly not happening in China ... but this big step is being led right here," he told reporters.

François-Philippe Champagne, minister of innovation, science and industry, said it's a generational opportunity and will help keep jobs in the industry.

The Trudeau government has committed to cutting greenhouse gas emissions by 40 to 45 per cent below 2005 levels by 2030.

Unclear if new technology will lead to job losses

While the construction of the new technology will lead to 2,500 new jobs, it's unclear if or how many steelworkers may lose their jobs.

Spokesperson Marie Verdun said there shouldn't be many job losses based on 900 people expected to retire between now and 2028.

Tammy Oommen, associate program manager of the project, said it will take 160,000 training hours to have the workforce learn the new technology.

"There will be change and that's where we'll have to look at how do we support our people to be ready for the new context," she said.