Algoma Steel Achieves First Steel Production at Unit One EAF Project.

Algoma Steel Group Inc. has achieved its first steel production at Unit One of its new electric arc furnace (EAF) project, marking a milestone in its transformation and positioning the company to produce green steel with potential carbon emissions reduction of up to 70%. The project is the largest industrial decarbonization project in Canada.

Sault Ste. Marie, Ontario, July 10, 2025 — Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) has reached a significant milestone in its transformation journey with the successful production of its first steel at Unit One of its new electric arc furnace (EAF) project. This achievement marks a pivotal step in the company's transition to green steel production, with the potential to reduce carbon emissions by up to 70%.

The milestone comes after over ten days of successful electric arc testing and tuning, including individual and tandem tests of all nine Q-One transformer modules. This marks the culmination of a decade of careful planning and execution since breaking ground in November 2021. The successful commissioning of Unit One signifies Algoma's technical readiness to shift production methods, aligning with global efforts to decarbonize heavy industries.

Algoma's EAF technology fundamentally transforms the steelmaking process by utilizing scrap steel and Ontario's clean electricity grid, significantly reducing carbon emissions. The company has branded this new steel product line as Volta™, strategically positioning it in the growing market for low-carbon materials. The successful commissioning of Unit One demonstrates the viability of the technology at Algoma's scale of operations and positions the company favorably in the market for green steel.

The project, which began construction in November 2021, represents the largest industrial decarbonization project in Canada. The swift implementation of this transition is notable, particularly during a period of trade uncertainty. Algoma's strategic use of Ontario's clean electricity grid, primarily powered by nuclear, hydroelectric, and other low-carbon sources, creates a competitive advantage in emissions intensity that steel producers in coal-dependent regions cannot easily match.

The successful launch of the EAF unit positions Algoma to meet growing demand for lower-carbon steel products in sectors such as construction, automotive, and manufacturing, where emissions reduction in the supply chain is increasingly valued. The project's designation as "the largest industrial decarbonization project in Canada" signals its environmental significance and potential template value for other heavy industrial transitions across North America.

References:
[1] https://www.globenewswire.com/news-release/2025/07/10/3113148/0/en/Algoma-Steel-Announces-First-Arc-and-First-Steel-Production-from-its-New-Electric-Arc-Furnace-Unit-One.html
[2] https://www.stocktitan.net/news/ASTL/algoma-steel-announces-first-arc-and-first-steel-production-from-its-g02refb8ddp0.html