The Ontario government is investing more than $2.5 million in three forestry projects across northwestern Ontario, including a major upgrade study at Thunder Bay Pulp and Paper.
The funding comes from Ontario’s Forest Biomass Program, which supports projects that make better use of wood waste and forest by-products while helping the forestry sector stay competitive during ongoing U.S. tariffs.
Where the money is going
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Thunder Bay Pulp and Paper: $2.4 million to plan boiler and chemical plant upgrades.
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AUX Energy (Fort Frances): $92,500 to develop a biomass-powered electricity project.
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Weyerhaeuser (Kenora): $32,650 to study production line improvements.
The province says the Thunder Bay upgrades could increase kraft pulp production by 11 per cent and create demand for more than 130,000 tonnes of forest biomass each year. The project is expected to help protect over 700 direct jobs and 3,350 indirect jobs.
Associate Forestry Minister Kevin Holland said the investment will help the industry recover when market conditions improve. Several mills in the region have been idled in recent years, including operations in Thunder Bay, Ignace, Ear Falls and Terrace Bay.
Thunder Bay Pulp and Paper CEO Norm Bush said the funding will help the company evaluate three major capital projects needed to strengthen the mill’s future.