Ontario Energy Board approves Sault PUC's transformation station and transmission line application

The public utility in Sault Ste. Marie, PUC Services, is going ahead with a new transformation station and transmission line designed to meet a huge increase in electricity demand for Algoma Steel and the west end of the city.

The Ontario Energy Board gave its approval for the project this week.

PUC Services President and CEO Rob Brewer said the project will deliver power to allow Algoma Steel to convert the blast furnaces to greener technology.

"Algoma is transitioning from blast furnace technology, which uses a coal derivative called coke in their steel-making process, to electric arc, so using electricity instead of coal, in effect, " said Brewer. "And the result of that transition is the equivalent of taking a million cars off the road every year."

He said the new line and station will significantly improve system reliability and will help accommodate expected industrial expansion in the west end and the surrounding area.

It's a huge increase in demand considering the peak load of the existing system is 120 megawatts.

"This project here, in connecting Algoma Steel, is adding 300 megawatts of load," he said. "It's two-and-a-half times the entire city load just to electrify those two arc furnaces."

The application has been making its way through the regulatory process for three  years.

"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 Michael Garcia, President and Chief Executive Officer of Algoma Steel.

He said the Ontario Energy Board determined Algoma Steel won't need to provide any capital for the project.

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

Construction is expected to begin this year and finish in 2027.