Ontario is investing more than $2.5 million in three Northwestern Ontario forestry projects aimed at modernizing production, expanding the use of forest biomass and protecting more than 4,000 direct and indirect jobs across the regional supply chain.
The funding is being provided through the province’s Forest Biomass Program, with the largest portion directed to Thunder Bay Pulp and Paper. The government says the investments are intended to strengthen the forestry sector as producers contend with U.S. tariffs and increased competition in international markets.
Thunder Bay Pulp and Paper Receives More Than $2.4 Million
More than $2.4 million will support planning for boiler and chemical plant upgrades at Thunder Bay Pulp and Paper, an anchor mill in Northwestern Ontario’s forest economy.
According to the province, the proposed upgrades could increase daily kraft production by 11 per cent while creating annual demand for more than 130,000 tonnes of forest biomass. That additional demand is expected to support harvesting, hauling and trucking operations throughout the region.
“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.”
The modernization plans also target energy and environmental efficiencies. Ontario says the upgraded equipment could reduce the mill’s use of bleaching chemicals by approximately 30 per cent, while modernized boilers are expected to cut annual natural gas consumption by more than five million cubic metres — an amount the province says is equivalent to heating about 2,000 Northern Ontario homes for one year.
“Thunder Bay Pulp and Paper is evaluating several strategic projects that are focused on lowering manufacturing costs and increasing productivity. These projects are designed to further solidify the mill’s position as a high quality, low cost facility, able to compete in the new global economy. The financial support of the government of Ontario is key as we develop and bring these projects to fruition,” said Norm Bush, CEO of Thunder Bay Pulp and Paper.
Biomass Projects Planned for Fort Frances and Weyerhaeuser
Another $125,150 will be divided between two projects designed to improve productivity and increase the economic use of forestry by-products.
AUX Energy will receive $92,500 to develop plans for a biomass-powered generator in Fort Frances. The project is intended to improve regional energy security while creating another potential market for forestry biomass.
Weyerhaeuser will receive $32,650 to study production-line upgrades intended to lower costs while improving efficiency and product quality.
“We appreciate the Ontario government’s commitment to strengthening the regional forest economy and its continued support for Ontario’s forest sector. This investment will help us evaluate potential opportunities to more efficiently and competitively convert byproducts from our local manufacturing processes into renewable bioenergy for customers across a range of industries,” said Mike Dietsch, Mill Manager, Weyerhaeuser.
“We thank the Government of Ontario for its support of the Town of Fort Frances’ biomass initiative. This investment demonstrates the value of collaboration between government, municipalities and industry partners to drive innovation and economic growth. At AUX Energy, a wholly owned Hydro One Energy Solutions Company, we are helping to advance a project that supports Ontario’s forestry sector, promotes the production of domestic energy and creates long-term value for communities and businesses,” said Kyle Mersky, President, AUX Energy.
Province Targets Forestry Supply Chain Resilience
The three projects are expected to help protect more than 700 direct jobs and over 3,350 indirect jobs. They form part of Ontario’s broader strategy to strengthen domestic forestry supply chains, increase productivity and develop new markets for residual and surplus wood fibre.
Since the Forest Biomass Program launched in May 2023, Ontario has committed more than $86 million to 74 projects. Those investments have leveraged more than $279 million in additional external funding and created more than 115 new jobs.
The province’s forestry sector generates almost $21 billion in business revenue and supports nearly 155,000 jobs.
“By supporting projects at Thunder Bay Pulp and Paper, AUX Energy and Weyerhaeuser, our government is helping create new opportunities for forest biomass, strengthen regional supply chains and support long-term economic growth across northwestern Ontario. These investments will help protect jobs, encourage innovation and reinforce the important role the forestry sector plays in communities throughout northern Ontario,” said George Pirie, Minister of Northern Economic Development and Growth.
The funding comes as Ontario pursues a 10-year strategy to modernize its forestry industry, expand the forest bioeconomy and strengthen the sector’s ability to compete in global markets while maintaining employment and economic activity across Northern communities.