- ESG & Impact
- Active Governance & Stewardship
- Algoma Steel
Partnering with Companies to Create More Sustainable Business Models
Algoma Steel is a leading Canadian flat rolled steel producer in which we hold a minority equity position across our Credit and Special Situations strategies. Bain Capital held a seat on the company’s board from 2018 to 2021, helping lead Algoma through creditor protection and ultimately merge with a special purpose acquisition company (SPAC) to take Algoma public. Through our board participation, we advised and encouraged the initial stages of the company’s transformation to a more sustainable business model and production method, which we believe will meaningfully reduce its environmental impact. Additionally, we appointed a female director as our successor on Algoma’s board when stepping down in 2021.
Algoma is transitioning its steel manufacturing process from the traditional, carbon intensive blast furnace route, which requires iron ore and metallurgical coal as raw materials, to electric arc furnace steelmaking that utilizes electricity to recycle scrap metal. Electric arc furnace production generates substantially less greenhouse gas (GHG) emissions and other air pollutants compared to blast furnace production. Further, Algoma utilizes Ontario’s power grid, which is predominately powered by non-emitting energy sources including nuclear and hydro. Through this improvement, which is set to begin in 2024 and conclude by 2028, Algoma is expected to reduce its annual GHG emissions by 70% and sulfur and nitrogen dioxide (SOx and NOx) emissions by over 50%. This reduction represents 11% of the Canadian federal 2030 target and 100% of Ontario’s provincial 2030 target for industrial emitters under the Paris Agreement.