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Algoma Steel Announces First Arc and First Steel Production from its New Electric Arc Furnace Unit One

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Algoma Steel (NASDAQ: ASTL) has achieved a significant milestone with its first steel production at Unit One of its new electric arc furnace (EAF) facility. This breakthrough follows over ten days of successful electric arc testing and marks a crucial step in Canada's largest industrial decarbonization project.

The company introduced its new green steel brand "Volta", which will be produced through the EAFs. Powered by Ontario's clean electricity grid, this innovative production method has the potential to reduce carbon emissions by up to 70%. The project, which began construction in November 2021, represents a major advancement in Algoma's transformation towards sustainable steel production.

Algoma Steel (NASDAQ: ASTL) ha raggiunto un traguardo importante con la prima produzione di acciaio nell'Unità Uno del suo nuovo impianto a forno ad arco elettrico (EAF). Questo risultato arriva dopo oltre dieci giorni di test elettrici riusciti ed è un passo fondamentale nel più grande progetto di decarbonizzazione industriale del Canada.

L'azienda ha lanciato il suo nuovo marchio di acciaio verde "Volta", che sarà prodotto tramite gli EAF. Alimentato dalla rete elettrica pulita dell'Ontario, questo innovativo metodo produttivo ha il potenziale di ridurre le emissioni di carbonio fino al 70%. Il progetto, iniziato a novembre 2021, rappresenta un notevole progresso nella trasformazione di Algoma verso una produzione di acciaio sostenibile.

Algoma Steel (NASDAQ: ASTL) ha alcanzado un hito significativo con su primera producción de acero en la Unidad Uno de su nueva instalación de horno de arco eléctrico (EAF). Este avance sigue a más de diez días de pruebas exitosas de arco eléctrico y representa un paso crucial en el mayor proyecto de descarbonización industrial de Canadá.

La empresa presentó su nueva marca de acero verde "Volta", que se producirá mediante los EAF. Impulsado por la red eléctrica limpia de Ontario, este innovador método de producción tiene el potencial de reducir las emisiones de carbono hasta en un 70%. El proyecto, que comenzó su construcción en noviembre de 2021, representa un avance importante en la transformación de Algoma hacia una producción de acero sostenible.

Algoma Steel (NASDAQ: ASTL)� 새로� 전기�() 설비� 1호기에서 � 강철 생산이라� 중요� 이정표를 달성했습니다. � 돌파구는 10일이 넘는 성공적인 전기 아크 테스� 이후 이루어졌으며, 캐나� 최대� 산업 탈탄소화 프로젝트에서 중요� 단계입니�.

회사� 새로� 친환� 강철 브랜� "Volta"� 도입했으�, 이는 전기로를 통해 생산� 예정입니�. 온타리오� 청정 전력망으� 구동되는 � 혁신적인 생산 방식은 탄소 배출량을 최대 70%까지 줄일 � 있는 잠재�� 가지� 있습니다. 2021� 11월에 착공� � 프로젝트� Algoma가 지� 가능한 강철 생산으로 전환하는 � 있어 � 진전� 의미합니�.

Algoma Steel (NASDAQ : ASTL) a franchi une étape importante avec la première production d'acier à l'Unité Un de sa nouvelle installation de four à arc électrique (EAF). Cette avancée fait suite à plus de dix jours de tests réussis à l'arc électrique et marque une étape cruciale dans le plus grand projet de décarbonation industrielle du Canada.

L'entreprise a présenté sa nouvelle marque d'acier vert "Volta", qui sera produite grâce aux EAF. Alimentée par le réseau électrique propre de l'Ontario, cette méthode de production innovante a le potentiel de réduire les émissions de carbone jusqu'à 70%. Le projet, dont la construction a débuté en novembre 2021, représente un progrès majeur dans la transformation d'Algoma vers une production d'acier durable.

Algoma Steel (NASDAQ: ASTL) hat einen bedeutenden Meilenstein erreicht: die erste Stahlproduktion in Einheit Eins seiner neuen Elektrolichtbogenofen (EAF)-Anlage. Dieser Durchbruch folgt auf über zehn Tage erfolgreicher Lichtbogentests und markiert einen entscheidenden Schritt im größten industriellen Dekarbonisierungsprojekt Kanadas.

Das Unternehmen stellte seine neue grüne Stahlmarke "Volta" vor, die über die EAFs produziert wird. Angetrieben vom sauberen Stromnetz Ontarios, hat dieses innovative Produktionsverfahren das Potenzial, die CO2-Emissionen um bis zu 70% zu reduzieren. Das Projekt, dessen Bau im November 2021 begann, stellt einen bedeutenden Fortschritt in Algomas Transformation hin zu nachhaltiger Stahlproduktion dar.

Positive
  • Potential 70% reduction in carbon emissions through EAF technology
  • Successfully completed first steel production at new EAF Unit One
  • Launch of new environmentally friendly steel brand 'Volta'
  • Leverages Ontario's clean electricity grid for greener production
Negative
  • Operating during period of trade uncertainty
  • Significant capital investment and transformation costs implied

Insights

Algoma's EAF transition marks a technological leap toward low-carbon steel production, potentially reducing emissions by 70% while maintaining production quality.

Algoma Steel has achieved a critical technical milestone with the first steel production from its new Electric Arc Furnace (EAF) Unit One. This follows over ten days of successful arc testing and tuning of all nine Q-One transformer modules—a complex engineering achievement that signals the company's technical readiness to shift production methods. The company has branded this new steel product line as մDZٲ�, strategically positioning it in the growing market for low-carbon materials.

The technical significance cannot be overstated. EAF technology fundamentally transforms the steelmaking process from traditional blast furnace operations that rely heavily on coal to electric arc technology that can utilize scrap steel and Ontario's relatively clean electricity grid. This technical shift enables the potential 70% reduction in carbon emissions while maintaining production capabilities.

From a production standpoint, this represents the first phase of what appears to be a multi-unit EAF implementation. The successful commissioning of Unit One demonstrates the viability of the technology at Algoma's scale of operations. EAF technology offers greater production flexibility compared to blast furnaces, allowing for more responsive adjustments to market demands and potentially reduced operational costs once fully implemented.

The technical timing is notable—launching this capability during a period of trade uncertainty suggests confidence in the production economics and market differentiation the EAF technology provides. The transformation positions Algoma to meet growing demand for lower-carbon steel products in construction, automotive, and other manufacturing sectors where emissions reduction in the supply chain is increasingly valued.

The commissioning of Algoma's first EAF unit represents a landmark achievement in Canadian industrial decarbonization. With potential carbon emissions reductions of up to 70%, this project exemplifies the scale of impact possible when heavy industry embraces clean technology transformation. The project's execution since breaking ground in November 2021 demonstrates relatively swift implementation for an industrial transition of this magnitude.

Strategically, Algoma is capitalizing on Ontario's clean electricity grid—which is primarily powered by nuclear, hydroelectric, and other low-carbon sources—creating a competitive advantage in emissions intensity that steel producers in coal-dependent regions cannot easily match. This positions the company favorably as carbon border adjustment mechanisms and other climate policies emerge globally.

The branding of their EAF-produced steel as մDZٲ� indicates a deliberate market differentiation strategy, targeting customers with environmental commitments who need to reduce Scope 3 emissions in their supply chains. Construction, automotive, and appliance manufacturers face increasing pressure to decarbonize their materials sourcing, creating premium market opportunities for lower-carbon steel.

From a climate impact perspective, steel production accounts for approximately 7-9% of global carbon emissions, making decarbonization projects of this scale essential for meeting climate targets. The EAF transition represents an immediate emissions reduction opportunity using existing technology, rather than relying on future breakthrough technologies like hydrogen steelmaking that remain years from commercial scale.

The project's designation as "the largest industrial decarbonization project in Canada" signals both its environmental significance and potential template value for other heavy industrial transitions across North America.

SAULT STE. MARIE, Ontario, July 10, 2025 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma� or the “Company�), a leading Canadian producer of hot and cold rolled steel sheet and plate products, today announced that it has achieved its first steel production at Unit One of its new, state-of-the-art electric arc furnace (“EAF�) project. The milestone follows over ten days of successful electric arc testing and tuning, including individual and tandem tests of all nine Q-One transformer modules.

The first arc and steel production marks a pivotal milestone in Algoma’s transformation and positions the Company to better meet the evolving needs of its customers through the production of green steel—with the potential to reduce carbon emissions by up to 70 percent.

Michael Garcia, President and CEO of Algoma, commented, “We are proud to have reached this critical milestone in what is the largest industrial decarbonization project in Canada. This moment reflects years of careful planning, disciplined execution, and extraordinary effort since we broke ground in November 2021. Bringing the first EAF online during a period of trade uncertainty underscores our determination to innovate and lead, opening new opportunities as we begin to realize the full potential of EAF steel production.�

Introducing մDZٲ�

All steel produced through our EAFs will carry the Volta name—delivering the same performance our customers rely on, with dramatically lower emissions. Powered by Ontario’s clean electricity grid, Volta is expected to reduce our carbon footprint by up to 70 percent and help fuel the growth of the low-carbon economy. The name Volta pays tribute to Alessandro Volta, who first harnessed electricity in 1800.

Build a better future. Build with Volta.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains “forward-looking information� under applicable Canadian securities legislation and “forward-looking statements� within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements�), including statements regarding Algoma’s transition to electric arc furnace (EAF) steelmaking, Algoma’s future as a leading producer of green steel, Algoma’s modernization of its plate mill facilities, transformation journey, ability to deliver greater and long-term value, potential to reduce carbon emissions, ability to offer North America a secure steel supply and a sustainable future, and investment in its people, and processes. These forward-looking statements generally are identified by the words “believe,� “project,� “expect,� “anticipate,� “estimate,� “intend,� “strategy,� “future,� “opportunity,� “plan,� “design,� “pipeline,� “may,� “should,� “will,� “would,� “will be,� “will continue,� “will likely result,� and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions. Many factors could cause actual future events to differ materially from the forward-looking statements in this document. Readers should also consider the other risks and uncertainties set forth in the section entitled “Risk Factors� and “Cautionary Note Regarding Forward-Looking Information� in Algoma’s Annual Information Form, filed by Algoma with applicable Canadian securities regulatory authorities (available under the company’s SEDAR+ profile at www.sedarplus.com) and with the SEC, as part of Algoma’s Annual Report on Form 40-F (available at www.sec.gov), as well as in Algoma’s current reports with the Canadian securities regulatory authorities and SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Algoma assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

About Algoma Steel

Based in Sault Ste. Marie, Ontario, Canada, Algoma is a fully integrated producer of hot and cold rolled steel products, including sheet and plate. Driven by a purpose to build better lives and a greener future, Algoma is positioned to deliver responsive, customer-driven product solutions to applications in the automotive, construction, energy, defense, and manufacturing sectors. Algoma is a key supplier of steel products to customers in North America and is the only producer of discrete plate products in Canada. Its state-of-the-art Direct Strip Production Complex (“DSPC�) is one of the lowest-cost producers of hot rolled sheet steel (HRC) in North America.

Algoma is on a transformation journey, modernizing its plate mill and adopting electric arc technology that builds on the strong principles of recycling and environmental stewardship to significantly lower carbon emissions. Today, Algoma is investing in its people and processes, working safely, as a team to become one of North America’s leading producers of green steel.

As a founding industry in their community, Algoma is drawing on the best of its rich steelmaking tradition to deliver greater value, offering North America the comfort of a secure steel supply and a sustainable future.

For more information, please contact:
Michael Moraca
Vice President - Corporate Development & Treasurer
Phone: 705.945.3300
E-mail:


FAQ

What milestone did Algoma Steel (ASTL) achieve in July 2025?

Algoma Steel achieved its first steel production at Unit One of its new electric arc furnace (EAF) facility, following over ten days of successful electric arc testing and tuning.

How much can Algoma Steel's new EAF technology reduce carbon emissions?

The new EAF technology, powered by Ontario's clean electricity grid, has the potential to reduce carbon emissions by up to 70 percent.

What is Volta steel by Algoma?

Volta is Algoma's new green steel brand produced through their electric arc furnaces, offering the same performance as traditional steel but with dramatically lower emissions.

When did Algoma Steel begin construction of its EAF project?

Algoma Steel broke ground on its electric arc furnace project in November 2021, marking it as Canada's largest industrial decarbonization project.

What testing was completed before Algoma's first EAF steel production?

Algoma completed over ten days of electric arc testing and tuning, including individual and tandem tests of all nine Q-One transformer modules.
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