Ontario is investing $5.1 million to advance engineering and evaluation work aimed at potentially restarting the idled Espanola pulp and paper mill, a project the province says could create hundreds of direct jobs and strengthen the forestry supply chain across northeastern Ontario.
The funding for Bioveld North Inc. is being provided through Ontario’s Forest Biomass Program. If the mill restart proceeds successfully, the facility could become a major regional industrial anchor, with the potential to create 400 direct jobs and support approximately 2,000 indirect jobs.
Funding Targets Mill Restart and Forestry Jobs
The provincial investment will support engineering work needed to determine how the former Espanola Pulp and Paper Mill could be restarted and modernized. The work will include identifying efficiency and reliability improvements intended to make the facility more competitive in domestic and international markets.
“Our government is delivering on our forest sector roadmap priorities with targeted funding to restore a critical economic engine in the region,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “Anchor mills are vital to the long-term success of Ontario’s forest sector, and this investment will help build a more competitive and resilient forest sector by unlocking new markets and new opportunities for growth in communities across the province.”
The project will also examine opportunities to diversify the mill beyond traditional pulp and paper production, including the potential development of renewable fuels and other bioproducts.
“This investment reinforces our Roadmap to Protecting Ontario’s Forest Sector and commitment to the workers and communities that rely on a strong forest economy,” said Mike Harris, Minister of Natural Resources. “By supporting necessary work to begin the potential restart of the Espanola Mill, our government is helping create the conditions for job creation, stronger regional supply chains and support long-term economic growth across Northern Ontario.”
Restart Could Restore Demand for Ontario Wood
A revitalized Espanola mill could restore annual demand for as much as 1.8 million cubic metres of sustainably sourced wood, according to the province. That demand could generate economic activity throughout the regional supply chain, including opportunities for harvesting companies, trucking businesses, Indigenous enterprises and service providers.
Ontario says the early-stage investment is also intended to help create conditions for attracting private capital required for a broader modernization of the facility.
Bioveld North acquired the former Domtar Espanola Mill in 2025. The company is a Canadian-owned subsidiary of BMI Group, which specializes in restarting and transforming idled industrial facilities across North America.
“Espanola has been the economic heartbeat of this region for more than a century. With Ontario’s support, we can complete the detailed design work to test the viability of bringing the mill back and reconnecting the sawmills, contractors and families who depend on it,” said Olga Patronik, Executive Project Coordinator, BMI Group. “Our vision goes beyond pulp and paper – a modernized Espanola can become a bioproduct hub that puts every part of the tree to work, from pulp and paper to biofuels, biochar, and other low-carbon products. We’re grateful to the province for backing a made-in-Ontario approach to rebuilding our forest economy.”
Province Looks to Strengthen Forestry Supply Chain
The investment comes as Ontario pursues its 10-year Roadmap to Protecting Ontario’s Forest Sector, which focuses on defending existing forestry operations, adapting the industry to changing markets and expanding opportunities for next-generation forest products.
The province says Ontario’s forest sector generates close to $21 billion in business revenue and supports approximately 155,000 jobs.
The Forest Biomass Program provides up to $20 million annually for projects designed to increase the use of forest biomass and develop new applications for wood. Since launching in 2023, the program has committed more than $70 million to 68 projects, helping secure nearly $260 million in additional external funding and creating more than 110 new jobs.
Regional Leaders Back Espanola Mill Project
Local officials have emphasized the potential economic impact of restoring a major industrial operation in Espanola.
“A significant investment from the province of Ontario will revitalize the community of Espanola while supporting workers, families, and the industry. Upgrades that improve efficiency and reliability will enhance competitiveness, create new opportunities, and strengthen the forestry industry’s long-term resilience.”
- Bill Rosenberg
MPP, Algoma—Manitoulin
“The Forest Sector in Ontario is in critical need of an anchor facility such as is being proposed by Bioveld North. The Province’s investment demonstrates that Bioveld, the Town of Espanola and the surrounding region is best placed to develop that hub. The recently adopted Economic Diversification Strategy for the LaCloche Region, a project driven by the Town of Espanola, identifies the critical importance of developing a coordinated mass timber and biomass collaboration strategy, and we are very pleased and excited to see Bioveld and the Province leading this charge.”
- Douglas Gervais
Mayor, Town of Espanola
The province says the Espanola investment forms part of its broader strategy to protect forestry employment, diversify forest products and strengthen northern Ontario supply chains amid changing global trade conditions. A successful restart would position the mill as both a traditional forest-products facility and a potential hub for emerging low-carbon bioproducts.