Algoma Steel restarts EAF production under interim power arrangements

Thursday, 03 September 2026 19:57:14 (GMT+3)   |   San Diego

Canadian steelmaker Algoma Steel Group Inc. said on September 2 that it has resumed electric arc furnace (EAF) production at its Sault Ste. Marie, Ontario, works, while the turbine at the center of last month's unplanned outage at its Lake Superior Power (LSP) generating facility remains out of service.

The company said that, since its August 17 update, it has worked with the Independent Electricity System Operator (IESO) to put interim operating arrangements in place that enabled EAF production to restart as of August 29. Algoma said it is maintaining sustained production under those arrangements, including through certain planned work on the provincial electricity system, and is currently producing and shipping steel within the parameters of the arrangements.

The IESO is reviewing upcoming planned power system outages with the objective of minimizing potential interruptions to Algoma's steelmaking operations while “maintaining the safety and reliability of the provincial electricity system,” they stated in the company announcement.

Algoma said it is pursuing multiple alternatives intended to restore full LSP generating capacity as quickly as possible, including the repair and return to service of the affected turbine and securing a replacement turbine. The company said it is working with GE and other parties to advance these alternatives in parallel and to determine the most effective and timely path back to full capacity.

The producer of plate and hot rolled sheet products added that it continues to assess the potential impact on production and shipments while advancing several mitigation options, noting that the extent of any impact will depend on the timing and implementation of those measures.

The outage began on August 17, when one of the LSP turbine units detected an abnormal condition and was automatically taken offline, forcing the suspension of EAF production. Algoma said at the time that the EAF outage was expected to last no more than 21 days, and that an alternative onsite power supply arrangement with the IESO could enable a restart within approximately 10 days.

BerkArslan
Berk Arslan
Editor

I graduated from University of Illinois at Chicago with a B.S. in Finance, and also have Masters degree from Northeastern Illinois University in Bilingual Bicultural Education and a Masters from Moody Bible Institute in Divinity. I have been in the steel industry since 2019, focusing on long products.  I now write on finished longs in Mexico, and cover market analysis and dynamics in North America.

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