With the U.S. walled off to Canadian steel imports, tariff-whacked Algoma Steel is putting out feelers to find new customers.
One for the order book could involve a “strategic collaboration” with TransPod, a Toronto technology company, that the Sault Ste, Marie steelmaker is joining, with the Alberta government, for a proposed ultra-high-speed, intercity rail solution.
TransPod are the architects of a next-generation tube system designed to carry vehicles at speeds greater than 1,000 kilometres per hour between cities.
The company, regarded as world experts in this type of technology, bills this innovation as a faster, carbon-free alternative to jets and automobiles.
TransPod signed a memorandum of understanding with Alberta in 2020 to test and construct a hyperloop between the cities and use Canadian steel to advance a high-speed test track.
The system features an all-electric vehicle called the FluxJet, which would make frequent departures from stations between the cities, in this case between Calgary and Edmonton.
With the project price tag estimated around $22 billion, a 2021 feasibility study estimated the route travel time at 45 minutes.
Through this arrangement, Algoma could be the supplier of 1.5 to 2 million tonnes of steel during construction.
Also included in this partnership is Supreme Steel, a Western Canada steel erector, which would handle the manufacturing of steel guideways that will carry the Flux Jet vehicles.
A joint Oct. 2 news release said some preliminary work is done but no definite project timeline was provided as the project is delayed.
Alberta wants to integrate this concept in its provincial transportation master plan, due out by year’s end. Development will resume as soon as the province releases that strategy.
And before any vehicles enter the tube, provincial and environmental approvals will be needed, construction permits pocketed, and land secured for a transportation corridor.
The system must also be field-trialled. Construction of a test track is needed for high-speed testing and certification, followed by construction of a full intercity line. A test track site has been selected in Leduc County, Alta., to put this system through its paces.
This alliance fits the long-term strategy for Algoma, which had been shipping more than 50 per cent of its plate and sheet to the U.S.
As part of its pivot plans to diversify its customer base, Algoma has been scoping out opportunities in Canadian shipbuilding, defence, energy and other infrastructure projects of national importance.
Earlier this year, Algoma signed a memorandum of understanding with Vancouver shipbuilder Seaspan to be part of the shipbuilding supply chain network.
"By supporting this transformation project, this partnership effectively secures long-term demand in Canada, reduces our reliance on exports, and ensures the strength of our steel sector for decades to come,” Algoma CEO Michael Garcia in a statement.
"Canadian industry is ready to deliver the future of transportation. Together with Algoma and Supreme Steel, we can generate jobs, strengthen supply chains, and position Alberta as a hub of productivity,” said Sebastien Gendron, TransPod co-founder and CEO.