Stelco Announces Entering into of Energy Services Agreement
by David Fleschen
Stelco Holdings Inc. ("Stelco Holdings" or the "Company") (TSX: STLC) today announced that its wholly-owned subsidiary, Stelco Inc. ("Stelco"), has entered into an agreement with DTE Energy Services, Inc. ("DTE") for the development, construction and operation of a 65MW cogeneration facility ("Cogen Plant") at Stelco's Lake Erie facility in Nanticoke, Ontario. DTE will fund the capital costs associated with the construction of the Cogen Plant and Stelco will pay DTE a fixed annual fee pursuant to an energy services agreement for operating the Cogen Plant for a term of 20 years. Construction is expected to start in the Summer of 2020 with the Cogen Plant expected to be operational in the first half of 2022. Once operational, the Cogen Plant is expected to reduce Stelco's energy costs and further enhance the utilization of Stelco's process-generated off gases.
"This arrangement with DTE is yet another example of Stelco's commitment to improve our business efficiencies and reduce our cost of electricity while at the same time improving our environmental footprint by recycling energy-containing gasses," stated Alan Kestenbaum, Executive Chairman and Chief Executive Officer of Stelco Holdings. "We are excited about this opportunity and look forward to working with DTE over the months and years ahead to bring this project to completion."
Source: Stelco, Photo: Fotolia