Essar Steel Algoma Confirms Start-up of Cogeneration Facility



    SAULT STE. MARIE, ON, June 15 /CNW/ - Essar Steel Algoma confirmed today
they have successfully started up a new, 70 MW Cogeneration Facility. A final
performance test on Saturday, June 13 confirmed the facility meets all
necessary operating standards as required by the Ontario Power Authority.
    Commenting on the exciting development, Essar Steel Algoma's Chief
Executive Officer Armando Plastino remarked, "The facility is operating
exceptionally well, exceeding our initial expectations. This project satisfies
both economic and environmental objectives, culminating in a sustainable,
highly efficient, clean energy solution. We greatly appreciate the support of
the Ontario Power Authority; without them this project would not have been
possible."
    In October, 2006, in response to a request for proposals for combined
heat and power generation, Algoma Energy LP entered into an agreement with the
Ontario Power Authority to construct and operate a 70 MW cogeneration
facility. The facility reduces Essar Steel Algoma's reliance on the provincial
power grid by 50% on average, freeing up this capacity for the rest of the
province. By employing low-NOx burner technology and by eliminating the need
to flare by-product fuel, the cogeneration facility will reduce Essar Steel
Algoma's nitrous oxide emissions by 15% (approximately 400 metric tonnes per
year).
    The cogeneration facility converts by-product fuels from the cokemaking
and ironmaking processes into electricity and steam for the steelworks. It
features two 375,000 lb/hr boilers and a 105MW turbine combined with other
related components such as a generator, a blast furnace gas holder, condensate
and feed-water systems, a water treatment plant, a cooling tower, a
transformer, and a distributed control system.
    Essar has set a precedent as the first integrated steel manufacturer in
Canada to construct a cogeneration facility fueled with by-product gas from
the operation. An official launch celebration is planned for later this
summer.

    Algoma Energy LP(AELP) is a Limited Partnership of Essar Steel Algoma
Inc., based in Sault Ste. Marie, Ontario. As a fully integrated steel
producer, Essar Steel Algoma derives its revenues primarily from the
manufacture and sale of hot and cold rolled steel products including sheet and
plate.





For further information:

For further information: COMPANY CONTACT: Brenda Stenta, Manager
Corporate Communications, Phone: (705) 945-2209, E-mail: bstenta@essar.com

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Essar Steel Algoma Inc.

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