CHAR Tech's Thorold Plant Gears Up for Steelmaker Supply

CHAR Technologies, a Toronto-based clean technology company, has substantially completed Phase 1 construction at its Thorold Renewable Energy Facility in Ontario. The plant now moves into commissioning, with commercial ramp-up targeted through October 2026. Its named steel customer is ArcelorMittal Dofasco, which will use the biocarbon to replace fossil carbon.

Phase 1 is designed to produce up to 5,500 tonnes of biocarbon per year, according to CHAR Tech's October 1, 2026 announcement. Production and revenue are expected to grow through the end of 2026.

The plant uses high-temperature pyrolysis (HTP) to process unmerchantable wood and organic waste. Phase 1 will produce biocarbon and pyrolysis gas. CHAR Tech describes its biocarbon as a carbon-neutral, drop-in replacement for metallurgical coal.

What Did CHAR Tech Complete at Thorold?

CHAR Tech reached substantial mechanical and electrical completion on Phase 1, the facility's first commercial-scale biocarbon line. The plant is now ready for end-to-end commissioning and ramp-up.

Final sign-off comes next from two Ontario safety regulators. The Electrical Safety Authority (ESA) and the Technical Standards and Safety Authority (TSSA) will approve each system as it comes online and reaches operating temperature.

The facility is owned 50/50 by CHAR Tech and The BMI Group, an Ontario real estate, infrastructure and business development company. BMI made a C$8 million project-level equity investment in the facility.

Construction moved steadily through 2026. CHAR Tech had shared a Thorold progress update in December 2025. Kiln installation was completed on August 5, 2026, and pyrogas piping installation began the week of September 23.

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Who Will Buy Thorold's Biocarbon?

ArcelorMittal Dofasco will buy Thorold's biocarbon under a previously announced offtake agreement. CHAR Tech also holds a biocarbon offtake deal with Elkem ASA for ferrosilicon production.

ArcelorMittal Dofasco is a Hamilton, Ontario steelmaker owned by global producer ArcelorMittal. It will use Thorold's biocarbon to replace fossil carbon in its steelmaking.

The supply deal fits a wider shift at the Hamilton site. In October 2022, ArcelorMittal broke ground on a C$1.8 billion project to move the plant to direct reduced iron and electric arc furnace steelmaking.

Elkem ASA is a Norway-based producer of advanced silicon-based materials. In April 2026, CHAR Tech closed its purchase of Elkem's biocarbon assets in Saguenay, Québec. The deal included an offtake for 62,500 tonnes of biocarbon over five years.

About 70% of North American steel and ferroalloys are made in electric arc furnaces, CHAR Tech said in its September 23, 2026 update. The company calls that furnace segment its key market for biocarbon.

Low-carbon inputs for these furnaces are drawing wider interest. Suppliers are developing green iron for electric arc furnace steelmaking. A planned U.S. biocarbon plant is also tied to a US$500 million-plus agreement to supply Japan's steel industry.

How Does CHAR Tech Turn Wood Waste into Steelmaking Carbon?

CHAR Tech heats wood waste in an HTP kiln, a pyrolysis process that runs without combustion air. The process leaves solid biocarbon plus a gas the company plans to upgrade in Phase 2.

Feedstock comes from Ontario partners. Suppliers include Walker Environmental, part of Niagara-based Walker Industries, and Lake Nipigon Forest Management. Lake Nipigon Forest Management is a First Nations-owned company holding the licence for the roughly 1 million-hectare Lake Nipigon Forest.

The site has run larger batches before commercial start-up. CHAR Tech announced a production run of 500 tonnes of pelletized biocarbon at Thorold.

Canada's wider biocarbon supply chain is growing too. Québec's Carbonity biochar plant in Port-Cartier turns forest residues into biochar.

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Regional clustering is another idea gaining ground. Decarbonfuse has looked at how green-steel hubs could link low-carbon inputs with steel production.

What Comes Next in Phase 2?

Phase 2 adds a second HTP kiln, methanation equipment and an onsite RNG pipeline injection point. The methanation step will upgrade Thorold's synthetic gas into renewable natural gas (RNG).

CHAR Tech says Thorold will be the first facility in the world to produce RNG and biocarbon simultaneously from wood waste. That milestone begins once Phase 2 is built and producing RNG.

Feature	Phase 1	Phase 2
Status	Substantially complete, now commissioning	Next construction phase
Kilns	One HTP kiln	Adds a second HTP kiln
Main outputs	Biocarbon and pyrolysis gas	Adds RNG through methanation
Gas grid link	None announced	Onsite RNG pipeline injection point
Biocarbon capacity	Up to 5,500 tonnes per year	Not yet disclosed

CHAR Tech is already preparing the gas side of the plant. In August 2026, the company received a patent notice of allowance for pyrogas treatment to syngas.

Public funding has supported the project along the way. Ontario approved C$6,438,168 through the Forest Sector Investment and Innovation Program in December 2022. It added C$2,259,142 through the Forest Biomass Program in December 2025.

The Government of Canada provided C$4,938,168 through the Investments in Forest Industry Transformation program. FedDev Ontario's Jobs and Growth Fund added C$1,500,000.

Where Else Is CHAR Tech Expanding?

CHAR Tech is extending its HTP platform to new projects in Québec. It is also testing the technology on wastewater biosolids in the United States.

In Québec, the company is advancing its Saint-Félicien biocarbon and green hydrogen project. Its Saguenay site is poised for upgrades to produce up to 15,000 tonnes of pelletized biocarbon per year. The 62,500-tonne Elkem agreement covers 12,500 tonnes of supply each year.

In the United States, CHAR Tech joined Synagro and Baltimore City on a commercial-scale pyrolysis pilot for PFAS destruction. The company reports that independent testing under EPA Method 1633 found no detectable PFAS in its biochar.

From Kiln to Customer

Thorold is moving from construction site to supplier. Up to 5,500 tonnes of Ontario biocarbon a year is set for steel and ferrosilicon customers.

Electric arc furnaces already make about 70% of North American steel and ferroalloys, giving the plant a sizable home market. Regulator approvals, first deliveries and the Phase 2 build are the next milestones to watch.

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