More Air Pollution: ArcelorMittal Dofasco Expansion Plans

ArcelorMittal Dofasco is trumpeting its plans to invest over $119 million in upgrades to its Hamilton plant. This includes bringing 20 dormant coke ovens and a blast furnace back into operation, and introducing pulverized coal injection (PCI) systems to all of its blast furnaces.

The company claims the plans are a huge plus for Hamilton to secure existing jobs and add 40 new ones. The move will also allow an increase in annual steel production at the plant from the current 4.2 million to a whopping 5 million tonnes per year.

The strong interest in expansion is a direct result of rocketing global steel prices. With the price per tonne for steel doubling over the past year, there are huge profits to be made.

Environment Hamilton has been following these developments very closely, in light of chronic problems with visible emissions and industrial fallout in the city's north end.

Our research shows that these changes will require new provincial environmental approvals or amendments to existing approvals, which must be posted to the provincial Environmental Bill of Rights registry for a minimum 30-day public comment period.

This means the public will have the opportunity to provide feedback to the Ministry of the Environment on the proposed changes.

In order to introduce their plans to the community and begin to solicit feedback, the company held a public open house on July 31. Company staff and consultants were on hand to explain the plans and answer any questions.

Environment Hamilton's Lynda Lukasik attended the open house seeking detailed information regarding potential environmental impacts of the plans, as well as the timelines the company is following in submitting its applications for provincial approvals that will generate opportunities for public comment.

Based on the responses from company representatives, their applications will be submitted some time in August. Company representatives say they are managing to decrease the level of pollution generated per tonne of steel produced at the plant, but also confirmed that an increase of 800,000 tonnes per year will mean that the plant's overall air pollution releases will increase.

When asked what the magnitude of the increase will be, company representatives indicated that they are still undertaking modeling and emission testing to better predict what the likely levels will be.

The upgrade/expansion plans are not the only initiatives that we have been tracking at ArcelorMittal Dofasco. The company has also initiated efforts to secure what is called a provincial basic comprehensive (site wide) certificate of approval for all of its emissions to air.

Such comprehensive approvals are designed to replace the multitude of individual approvals for air emissions that industrial facilities like this one currently have for each emission source.

On the plus side for the environment, these new certificates are also designed to consider all sources of emissions to air, both point sources (stacks) and fugitive emissions such as road dust. These approvals therefore bring an opportunity to ensure that current unapproved sources of emissions to air are considered.

The certificates also bring perks to companies, allowing them to make some process modifications without having to always seek advance approval from the province, thereby enhancing operational flexibility. Columbian Chemical recently applied for such a certificate.

ArcelorMittal Dofasco hopes to submit its application for a comprehensive certificate of approval for air emissions in the fall of this year. And, once again, this certificate must be posted to the Environmental Bill of Rights for a 30-day public comment period.

Not that the situation isn't complicated enough, but there are more approvals that the company will likely be seeking in the coming months.

Under the new provincial air regulations, the iron and steel sector will be required to comply with tougher new air emission standards in the coming years. But the new air regulation provides a bit of an escape clause in the form of alternative standards.

Companies that feel they will be unable to meet the tougher standards for certain pollutants within the required timeframe can argue, on the grounds of economic hardship or technology limitations, for an extension.

The iron and steel sector has until October 31 of this year to submit such requests and it is looking very likely that both ArcelorMittal/ Dofasco and US Steel/ Stelco will be requesting an alternative standard at least for benzo(a)pyrene, a cancer-causing PAH (polycyclic aromatic hydrocarbon). The main source of benzo(a)pyrene at both facilities is the coke ovens.

Under the new air regulation, companies are required to consult with the public on any alternative standards they request. This includes providing the public with detailed information on modeling and monitoring information used to justify requests for alternative standards.

So, on top of the upgrades/ expansions and the pursuit of a basic comprehensive certificate of approval for air emissions, we are very likely to see ArcelorMittal Dofasco applying to the province for a delay on the timeline for meeting the tougher new provincial limits for emission of benzo(a)pyrene to air.

Company representatives, while they won't confirm that they will need to pursue an alternative standard, have indicated that if they do so, they will argue on the grounds that the current pollution control technologies available are not capable of getting plant emissions of benzo(a)pyrene down to the required levels.

When considered within the context of the company's plans to increase overall production, including increasing the amount of coke produced on-site, this situation also generates cause for concern.

Given the significant nature of these changes, Environment Hamilton will continue to closely track the plans at ArcelorMittal Dofasco and will provide regular updates on our website.