Electric arc furnace (EAF) steel production has resumed at Algoma Steel following a temporary suspension caused by an unplanned power generation outage. The restart restores steelmaking operations at a facility that transitioned fully to EAF production earlier this year.
The company resumed electric arc furnace (EAF) steel production at its Sault Ste. Marie, Ontario, facility on August 29 after working with the Independent Electricity System Operator (IESO) to establish interim operating arrangements. Algoma Steel reported that it is sustaining production and shipping steel under those arrangements while an affected turbine at its Lake Superior Power (LSP) generating facility remains unavailable.
The outage was first reported on August 17. Because LSP supplies electricity to Algoma’s steelmaking operations, the company temporarily suspended EAF production while downstream finishing and shipping activities continued. Algoma had initially estimated that the EAF outage would last no more than 21 days while it pursued options for restoring power.
Algoma is pursuing multiple options to restore full generating capacity at LSP, including repairing and returning the affected turbine to service or securing a replacement turbine. The steelmaker is working with GE and other parties to advance the alternatives in parallel and determine the most effective and timely path to restoring full generating capacity.
The EAF restart is significant for Algoma following its transition away from traditional integrated steelmaking. The company permanently ceased production at its blast furnace and associated coke batteries in January 2026, making its EAF facility the sole source of liquid steel for its plate and hot-rolled coil operations.
Construction of a second EAF unit is nearing completion, with first steel production expected in the third quarter of 2026. Once the EAF transformation is complete, the facility is expected to have approximately 3.7 million tons of annual raw steel production capacity.
Press release is available in its original form here. Additional information is from Algoma Steel’s August 17, 2026 original outage announcement, the company’s May 12 Q1 results, as well as the July 29 Q2 release.
