THUNDER BAY (News release) -- 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 bioeconomy and position Ontario as a G7 forest products leader.

Quick Facts

Since its launch in May 2023, the Forest Biomass Program has committed over $86 million in targeted investments to 74 projects, leveraging over $279 million in additional external funding and creating more than 115 new jobs.
The government released the Roadmap to Protecting Ontario's Forest Sector on April 28, setting out a 10-year plan to maintain Ontario's position as a G7 leader in making and selling wood products, with the competitive excellence and transformative technologies to unlock new global markets.
The forest sector is an essential industry, generating almost $21 billion in business revenue and supporting nearly 155,000 jobs.
Wood produced from Ontario's Crown forests is sustainably sourced and renewable. Wood is a renewable resource, a clean energy source and a sustainable - and biodegradable - alternative to single-use plastics.

Quotes

"Weyerhaeuser's TimberStrand LSL Mill remains a pillar for Northwestern Ontario, leveraging our world class lumber and skilled workforce. Through targeted investments, and strong partnerships with anchor mills and AUX Energy, we're ensuring the long-term efficiency and sustainability of operations and energy security throughout the region."

- Greg Rickford
Minister of Indigenous Affairs and First Nations Economic Reconciliation

"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."

- George Pirie
Minister of Northern Economic Development and Growth

"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."

- Norm Bush
CEO, Thunder Bay Pulp and Paper

"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."

- 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."

- Kyle Mersky
President, AUX Energy

"These announcements directly address two critical pillars in the transition and recovery of Ontario's forest sector - support for the long-term success of the primary sector's anchor mills and stimulation of new uses for residual and surplus fibre. Actions and outcomes such as these help secure a solid foundation for the future while driving new products and creating new markets, all while addressing key societal priorities including employment, resilient supply chains, and energy security."

- Scott Jackson
CEO, Centre for Research and Innovation in the Bio-economy (CRIBE)

"Investments in forest sector modernization reinforce Thunder Bay's position as the economic and industrial hub of Northwestern Ontario. By investing in the sector here in Thunder Bay, the Government of Ontario is sending a message to businesses and investors that our community and businesses are worth investing in. We are well positioned to build on this momentum, attract new opportunities and support continued growth across the forestry sector and its supply chain. We are excited to see this investment and the economic opportunities it will create for Thunder Bay and the region."

- Jamie Taylor
Thunder Bay Community Economic Development Commission (CEDC)

"Anchor mills like Thunder Bay Pulp and Paper are the heart of Northern Ontario's forestry supply chain. This strategic investment from the Ontario government strengthens our industry's global competitiveness while protecting thousands of local jobs. By driving modernization and efficiency, Minister Holland and the province are demonstrating a clear commitment to a resilient, self-reliant forest economy."

- Ian Dunn
President/CEO of the Ontario Forest Industries Association