The Ontario government is investing more than $2.5 million to advance major upgrades at Thunder Bay Pulp and Paper, as well as two additional projects in Northwestern Ontario that will increase the industry’s use of mill by-products and underused wood known as forest biomass.
The upgrades will help increase the forest sector’s production and capacity, protecting over 700 direct jobs and more than 3,350 indirect jobs. This Forest Biomass Program funding is part of the government’s plan to protect Ontario forestry workers in the face of recent U.S. tariff attacks by building a more resilient, innovative and diversified forest sector, ready to compete in global markets.
“Anchor mills are the foundation of forest sector productivity and a key priority of our roadmap for the industry,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “Our government is helping these essential businesses attract global investment to modernize, scale up and innovate, heightening the forest sector’s competitive edge in global markets.”
Ontario is investing more than $2.4 million to plan boiler and chemical plant upgrades at Thunder Bay Pulp and Paper, a critical anchor mill in Northwestern Ontario’s forest economy. The upgrades will improve competitiveness and raise daily kraft production by 11 per cent. This productivity will create a market for over 130,000 tonnes of forest biomass each year, strengthening forestry supply chains by adding demand for harvesting, hauling and trucking across the region.
This clean manufacturing investment will deliver significant environmental benefits by using forest biomass for green energy. Upgraded equipment will reduce the company’s use of bleaching chemicals by around 30 per cent, while the modernized boilers will cut annual natural gas use by over 5 million cubic metres, equal to heating 2,000 Northern Ontario homes for a year.
The province is also investing $125,150 in two additional projects that will support the forest sector in Northwestern Ontario by increasing productivity and maximizing the value of wood through greater use of forest biomass:
- AUX Energy is receiving $92,500 to develop plans for a biomass-powered generator project that will increase energy security in Fort Frances
- Weyerhaeuser is receiving $32,650 for a study of production line upgrades to reduce costs while improving efficiency and product quality
These investments deliver on the Roadmap to Protecting Ontario’s forest sector, the government’s plan to defend, adapt and grow the province’s cornerstone industry.
Guided by the roadmap, the government will continue to make strategic investments that equip the province to compete in the global forest bio-economy and position Ontario as a G7 forest products leader.
