Stelco entered into an agreement with DTE Energy Services to help it reduce steelmaking costs starting in 2022.
Under the agreement DTE Energy Services will design, construct, and operate a 65MW power facility for the steelmaker. The cogeneration facility will service Stelco’s Lake Erie steel mill in Ontario, Canada, according to media reports. The plant is expected to reduce Stelco’s steelmaking energy costs and enhance the utilization of the company’s gas generated processes.
Moreover, Stelco will pay a fixed annual fee pursuant to a 20-year energy services agreement where DTE funds the capital costs associated with construction of the plant. Construction is expected to start by the end of summer this year, with an operational target date for the first half of 2022.