Liquefied natural gas - Minister Arcand announce $4.5M grant for energy conversion project

Québec City, March 21, 2016 – The Minister of Energy and Natural Resources, Minister responsible for the Northern Plan and Minister responsible for the Côte-Nord region, Mr. Pierre Arcand, and the Minister of Sustainable Development, the Environment and the Fight Against Climate Change, Mr. David Heurtel, today announced a maximum grant of $4.5M to ArcelorMittal to conduct a pilot project on energy conversion to liquefied natural gas (LNG) of its manufacturing process and certain plant operations. This grant from the Green Fund is part of the 2013–2020 Climate Change Action Plan, which is aimed at improving the carbon footprint and energy efficiency of Québec businesses.

“Government support for this project is essential to developing the burgeoning liquefied natural gas sector, as it will demonstrate the technical feasibility of such a project. It should also induce sufficient demand for LNG to promote its distribution across the Northern Plan territory. It also reflects our government’s desire to ensure the implementation of energy efficiency and innovation measures aimed at reducing greenhouse gas emissions,” explained Minister Pierre Arcand.

ArcelorMittal, which operates the Fire Lake mine and the Mont-Wright mining complex, produces iron concentrate that is transported to the Port-Cartier pellet plant. To process the iron it receives, the plant consumes heavy fuel oil, a fossil fuel that produces significant greenhouse gas emissions. The government grant will support an energy conversion pilot project to switch the iron-ore pellet manufacturing process to liquefied natural gas. 

“We are very pleased to be able to count on support from the Government of Québec to conduct a pilot project at our Port-Cartier pellet plant. This project aims to convert a portion of our manufacturing process to liquefied natural gas, which will allow us to cut our GHG emissions by more than 30% compared to heavy fuel oil, as well as significantly reduce sulfur and other pollutant emissions. ArcelorMittal recognizes the importance of the liquefied natural gas sector for the future of our business, but we are also very proud to be able to participate in this developmental project for the Côte-Nord region,” said Pierre Lapointe, President and Chief Executive Officer of ArcelorMittal Mining Canada.

“Gaz Métro is delighted to see this pilot project transform into reality the steps initiated nearly 20 years ago to make natural gas accessible to industries in the Côte-Nord region,” explained Martin Implead, Vice President, Development and Renewable Energies. “Our teams have rallied to develop a flexible and economical solution enabling the pilot project to move forward. This solution helps reduce GHG by up to 32% while almost completely eliminating emissions of other air pollutants such as SOx and NOx. This aligns well with the Government of Québec’s current vision,” he added.

“Completing this pilot project will translate into cutting the company’s GHG emissions by over 4,945 tons of CO2 per year, which is the equivalent of taking 1,454 cars off Québec’s roads. Through its 2013–2020 Climate Change Action Plan, the government supports  forward-looking projects like this one, that have a tangible impact on reducing GHG emissions and on economic development. In addition to propelling us into the economy of the 21st century, focused on innovation and decarbonization, projects of this kind allow us to fight against climate change together and ensure a better quality of life for our children. Let’s do it for them!” exclaimed Minister Heurtel.

“The success of this demonstration project, which will run about 20 months, could generate major economic benefits for Québec. For energy-consuming businesses like mining companies, natural gas is an economical energy choice. For companies within the Northern Plan territory, it is also a strategic choice. What’s more, this project should make it possible to maintain or create a dozen direct and indirect jobs,” concluded Minister Arcand.

Sources:

Véronique Normandin
Press Attaché
Office of the Minister of Energy and Natural Resources, Minister responsible for the Northern Plan
Tel.: 418 643-7295

Mario Martin
Consultant II, Communication
ArcelorMittal Mining Canada G.P.
Tel.: 418 766-2000, ext. 2338

Marie-Christine Demers
Public Affairs 
Gaz Métro
Tel.: 514 598-3449