​Steel industry needs more clean nuclear energy to achieve de-carbonization goals, says report

Canada’s steel industry is one of the greenest in the world, thanks to carbon-free electricity generated by nuclear power, including the strong baseload supply from Bruce Power. And as Canadian steelmakers look to further de-carbonize their processes over the coming years, the demand for clean electricity is demonstrating the need for clean, reliable, affordable nuclear power.

A report released today (Oct. 12), “Greening Steel: How nuclear energy and electrification can power the future of steel,” shows that on average, Canadian steelmakers expect to see a 430-per-cent increase in electricity demand by 2050 as they transition to processes powered by electricity and expand operations.

Jointly produced by the Bruce Power Centre for New Nuclear and Net-Zero Partnerships at the Nuclear Innovation Institute (NII) and the Canadian Steel Producers Association (CSPA), the report highlights the increased demand from the Canadian steel sector for clean electricity in the decades ahead and demonstrates how nuclear can meet this demand.

“Nuclear can provide the clean, reliable, and affordable electricity supply to power a transition to widespread green steel-making, starting in Ontario and across Canada as provincial grid operators look at adding and expanding nuclear in their supply mix,” said Pat Dalzell, executive director of corporate affairs at Bruce Power.

“As the generator of 30 per cent of Ontario’s carbon-free electricity, and through the successful completion of our Major Component Replacement (MCR) projects and continued asset optimization, Bruce Power is committed to providing the long-term supply of clean power needed to further de-carbonize Canada’s steel industry, and other sectors. This report further proves there is no path to net-zero without nuclear.”

In developing this report, NII surveyed CSPA members about their priorities, emissions reduction plans and expectations for future electricity demand. All respondents stated that if the current policy landscape remains, their companies anticipate using an increased amount of electricity from the grid to meet their emissions reduction goals.

The Canadian steel industry has already made significant gains in de-carbonizing its operations and by 2030, CSPA members are on track to have reduced their greenhouse gas (GHG) emissions by at least 45 per cent which meets and exceeds Canada’s 2030 target of 40 per cent GHG emissions reductions by 2030.

Additionally, steel manufacturers can offset Scope 2 emissions from their Ontario-based operations by purchasing clean energy credits (CECs) from Ontario clean energy generators, including nuclear operators such as Bruce Power, in order to achieve voluntary environmental targets.

Companies looking to offset their emissions can purchase the CEC, which is an electronic certificate, and register it with the Ontario CEC Registry which facilitates the CEC transfer. Bruce Power’s CECs are created from its investment in new and incremental nuclear generation output through asset optimization and its Life-Extension Program.