Ontario is investing more than $17.3 million in four northern forestry projects aimed at modernizing manufacturing operations, strengthening domestic supply chains and expanding the use of forest biomass as the province seeks to improve the sector’s competitiveness amid changing global trade conditions.
The provincial funding is expected to create six jobs, protect more than 320 existing positions and support over 600 indirect jobs across the forestry supply chain. The investments will also help mills make greater use of manufacturing by-products and underused wood while reducing energy and operating costs.
Funding Targets Forestry Productivity and Supply Chains
The funding is being delivered through Ontario’s Forest Sector Investment and Innovation Program and Forest Biomass Program and forms part of the province’s 10-year Roadmap to Protecting Ontario’s Forest Sector.
“Our government is delivering on our forest sector roadmap by protecting jobs, modernizing businesses and unlocking markets for Ontario’s forest products,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “We are making strategic investments to build on the forest sector’s strengths and put our province at the centre of the global forest economy.”
Interfor will receive more than $9.6 million to modernize its Elk Lake sawmill with a biomass-powered energy system. The province said the project is expected to increase production by 27 per cent, reduce natural gas consumption by 80 per cent and lower annual operating costs by nearly $3 million.
“Our Elk Lake operation plays an important role in supporting jobs, families, and local businesses in northeastern Ontario. This investment will help strengthen the mill’s long-term competitiveness while supporting the broader forest sector value chain, including harvesting contractors, transportation providers, suppliers, and communities across the region. We appreciate the Province’s support for continued modernization investments, which help create the conditions needed for the forest sector to remain sustainable, innovative, and competitive, while providing rewarding long-term career opportunities for the next generation of forestry workers,” said Stuart Card, Vice-President, Eastern Operations, Interfor.
GreenFirst and Atlantic Power Projects Receive Support
GreenFirst Forest Products is receiving more than $5.9 million for a new production line designed to boost productivity by 24 per cent. The company will also receive more than $1.6 million to plan a biofuel facility that could eventually create 30 direct and 70 indirect jobs.
“This is an investment in the people of Chapleau. Modernizing the sawline and planer secures the mill’s competitiveness for the long run, and the biofuel feasibility work could bring a whole new industry to the region—up to 30 direct jobs from wood fibre that today has limited markets. We’re proud to build that future with the province,” said Joël Fournier, CEO, GreenFirst Forest Products.
Atlantic Power will receive more than $180,000 to upgrade the control system at its Calstock Power Plant, supporting continued bioenergy generation and demand for biomass produced in the region.
“Calstock has been converting biomass into electricity for this region since 2000, and modernizing the steam turbine control system is what keeps that going for years more. This investment upgrades critical control equipment, sustains the strong availability record the plant has built, and protects a reliable outlet for the biomass and mill by-products generated across the Hearst area,” said Dominic Lemieux, General Manager, Ontario Operations, Atlantic Power.
Projects Could Add Demand for 500,000 Tonnes of Biomass
Collectively, the projects have the potential to generate annual demand for more than 500,000 tonnes of forest biomass. That could create additional business for harvesting contractors, trucking companies and other suppliers while providing markets for wood material that might otherwise be underused.
“As Ontario’s forestry sector continues to navigate a changing global market, our government is making strategic investments to facilitate its modernization and ensure businesses can remain competitive. By strengthening our domestic supply chains, we will cement Ontario’s position as a global leader in forest products and biomass materials, all while protecting the tens of thousands of workers in and adjacent to this critical industry,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade.
“Modernizing the forest sector allows projects like this one in Chapleau to expand, diversify, and invest in their operations—creating more opportunities for Northern Ontario and for the workers and families who call this community home,” said Bill Rosenberg, MPP for Algoma—Manitoulin.
Forestry Remains Major Contributor to Ontario Economy
Ontario’s forest sector generates close to $21 billion in business revenue and supports approximately 155,000 jobs. The province said close to $90 million has been approved through the Forest Sector Investment and Innovation Program, helping secure another $420 million in external investment.
Since launching in 2023, the Forest Biomass Program has committed more than $83 million to 71 projects, attracting more than $276 million in additional funding and creating over 115 jobs.
“GreenFirst’s Chapleau sawmill is an important employer and a critical part of our local economy, with its impact reaching workers, families and businesses across the community. We have worked hard with GreenFirst, the province of Ontario, and the federal government to support the continued success of this operation, and today’s investment is welcome news for Chapleau. By improving productivity and strengthening the mill’s competitiveness, this project will help protect local jobs and support a stronger future for forestry in our community,” said Ryan Bignucolo, Mayor of Chapleau.
“OFIA welcomes these investments, which will help improve mill competitiveness and demonstrate the important role forest biomass can play in meeting Ontario’s energy needs, while creating new market opportunities and supporting communities across Northern Ontario,” said Maryam Arefmanesh, Ph.D., Director of Innovation, Energy and Manufacturing, Ontario Forest Industries Association (OFIA).
The investments are part of Ontario’s broader effort to strengthen forestry manufacturing, diversify markets and protect employment in northern communities while positioning the sector to compete in domestic and international markets.