Steelmaker's ESG Commitment
Algoma Steel Group Releases Its 2025 Sustainability Report, Aligning with Financial Practices
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Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) has released its 2025 Sustainability Report, formalizing what the company calls a new era in Canadian steelmaking. The report caps a turbulent year in which Algoma achieved its first major electric arc furnace milestone — but also posted a net loss of $984.9 million and laid off roughly 1,050 workers, according to The Sudbury Star.
CEO Rajat Marwah said the report reflects "a pivotal year" and that Algoma has "entered a new era as an EAF steel producer." The company, headquartered in Sault Ste. Marie, Ontario, has operated since 1901. For more than a century, it ran on coal-fired blast furnaces, making it one of Canada's largest single-point carbon emitters.
First Electric Arc Furnace Fires Up, Ending Coal Era
On July 10, 2025, Algoma lit its first Electric Arc Furnace — a moment the company calls the largest industrial decarbonization milestone in Canadian history. An electric arc furnace melts recycled scrap steel using electricity instead of burning coal. On January 18, 2026, Algoma permanently shut down Blast Furnace No. 7 and its cokemaking assets, ending 125 years of coal-based steelmaking, according to Owen Sound Sun Times.
Once a second EAF unit comes online — projected for the third quarter of 2026 — Algoma expects to cut its carbon emissions by roughly 70%, removing about 3 million tonnes of CO2 per year. Total annual raw steel capacity will reach 3.7 million tonnes. The company is marketing its low-carbon steel under the brand name Volta™, targeting the automotive, defense, and infrastructure sectors, according to Market Screener.
Tariffs and Losses Battered Algoma Through the Transition
The shift came at a steep financial cost. Algoma's revenue fell from $2.46 billion in 2024 to $2.09 billion in 2025. Its net loss widened from $139 million to $984.9 million. Annual steel shipments dropped 14% to 1.74 million tonnes. U.S. Section 232 tariffs of 50% effectively shut Algoma out of its largest export market and forced the company to pivot toward Canadian buyers, according to Pembroke Observer.
The federal and provincial governments poured in significant support — a $420 million federal EAF grant and $500 million in combined liquidity support — to help Algoma survive the transition. Even so, the company reported an operating loss of $1.33 billion for 2025. As of March 31, 2026, Algoma had $553 million in available liquidity. Analysts at Osmosis NL called it a "compelling transition story" but warned of serious execution risk.
Workers Paid the Price as a Third of the Workforce Was Cut
In December 2025, Algoma issued layoff notices to about 1,050 employees — roughly 900 hourly members of USW Local 2251 and 150 salaried members of USW Local 2724. Marty Warren, National Director of the United Steelworkers, called the timing a "disgrace," saying, "After accepting nearly $1 billion in public funding, it's a disgrace for Algoma Steel to announce layoffs of this scale without any responsibility to its workers," according to Prince George Post.
Phased layoffs officially began on March 23, 2026, as Algoma moved to EAF-only production. The 1,050 cuts represent more than a third of its roughly 2,800-person workforce. Union leaders say the promised "green jobs" are still years away. Federal Industry Minister Mélanie Joly had earlier pledged "500 new jobs" in future downstream manufacturing, according to Seaforth Huron Expositor.
Environmental Praise Mixed With Local Pollution Concerns
The 70% emissions reduction target has earned Algoma recognition as a climate leader in heavy industry. But the transition period has not been clean. Local environmental advocates, including lawyer Kerrie Blaise of Legal Advocates for Nature's Defence, raised alarms that Algoma temporarily exceeded provincial limits on benzene and sulfur dioxide — both harmful to human health — during the switchover, according to Daily Herald Tribune.
The shift to electric steelmaking has also strained the Ontario power grid. Hydro One is fast-tracking the Northeast Power Line project — a 200-kilometre transmission line — to supply the mill's surging electricity needs. Columbia University researcher Chris Bataille questioned whether the North American market for "green steel" will grow fast enough to justify the massive upfront costs, according to Clinton News Record.
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