Essar Steel Algoma continues to play an important role in Canada's commitment to the global reduction of greenhouse gases. As a member of the Canadian Steel Producers Association, we are actively participating with other member companies in consultation with the Government of Canada to ensure a meaningful impact on addressing climate change. Essar Steel Algoma has reduced CO2 emissions by nearly 64% per tonne of shipped steel since 1993 - well in excess of Canada's original commitment under the Kyoto Accord for a 6% reduction in greenhouse gas emissions.
In June 2009, Essar Steel Algoma commissioned a 70 MW combined heat and power cogeneration facility, fueled with cleaned by-product gases from our ironmaking and cokemaking operations. The facility generates both steam and power for the steelworks, reducing Essar's reliance on the provincial power grid by 50% on average and freeing up this capacity for the rest of the province.
By employing low-NOx burner technology and eliminating the need to flare by-product fuel, the cogeneration facility serves to reduce Essar's nitrous oxide emissions by 15% (approximately 400 metric tonnes per year).
By reducing our reliance on the provincial power grid, it has been estimated that Essar Steel Algoma's cogeneration facility offsets 1259 Tonnes of NOx, 2391 Tonnes of SO2 and 539,616 Tonnes of Greenhouse Gas (CO2) from the Ontario air shed previously emitted by the coal-fired facilities.
Essar has set a precedent as the first steel manufacturer in Canada to invest in the construction of a cogeneration facility fueled by by-product gas from the operation.