TransProd and Algoma Steel have agreed to partner on a high-speed rail project between Calgary and Edmonton.

Supreme Steel, a fabricator based in Acheson, Alta., is also partnering with the companies.

Under the partnership deal, Algoma may supply 1.5 million to two million tonnes of Canadian-made steel over the course of construction. Supreme will manufacture the precision steel guideways that will carry TransPod’s FluxJet railcars.

“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,” said Michael Garcia, Algoma’s CEO. 

Algoma has been hard hit by U.S. tariff increases. The company recently received $500 million in loans from the federal and Ontario governments to offset the impacts on its business as the company upgrades its technologies and seeks other international customers to become more sustainable.

As part of Algoma’s ongoing shift to electric-arc-furnace steelmaking, the company will be able to provide low-carbon intensity steel for the project, according to TransPod.

The Alberta government has designated the TransPod line as one of its major projects. The line’s construction is expected to create up to 140,000 jobs in Alberta and contribute approximately $19.2 billion to the region’s GDP.

Rendering: CNW Group/TransPod