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Sault Ste. Marie is exploring a partnership with local forestry firms to produce biochar for Algoma Steel's new electric arc furnaces, which can help decarbonize operations. Biochar can serve as a foaming agent, replace coke, improve slag dynamics, increase yield, and reduce CO₂ emissions.

The Ontario 2025 Interim Report recommends biochar as a primary carbon reduction strategy in steel production. Algoma Steel, a member of the Canadian Iron & Steel Energy Research Association, could become the primary customer for regional biochar producers. City council approved a resolution to investigate biochar and other green economy initiatives, with potential funding from provincial and federal sources.