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Government of Ontario

Ecosystem Private
Headquarters
Toronto, CA
Segment
Regulators & Public Bodies
Stories held
2
Last story
17 Sep 2026

The Government of Ontario is the provincial government of Ontario, Canada, headquartered in Toronto. It funds and regulates programmes affecting the forestry and forest-products sector, including biomass and mill-related initiatives.

2 stories · 2026

Ontario funds boiler and chemical-plant upgrade plans at Thunder Bay pulp mill

Thunder Bay Pulp and Paper will receive more than CAD 2.4m in Ontario provincial funding to plan boiler and chemical-plant upgrades expected to raise daily kraft production by 11%. The upgrades would also cut bleaching-chemical use by around 30% and reduce annual natural gas consumption by more than 5 million cubic metres. Separately, Ontario is providing CAD 93,000 to AUX Energy for a biomass generator project in Fort Frances and CAD 33,000 to Weyerhaeuser for production-line upgrade studies.

Why this mattersThe upgrade would lift kraft capacity at a Northwestern Ontario mill while cutting gas and chemical use, supporting the region's forestry-sector cost base.

  • Ontario will provide more than CAD 2.4m for planning of boiler and chemical-plant upgrades at Thunder Bay Pulp and Paper.
  • The upgrades are expected to raise daily kraft production by 11%.
  • The mill would need over 130,000 tonnes of additional annual forest biomass to support the higher output.
  • Bleaching-chemical use would fall by around 30% and natural gas consumption by more than 5 million cubic metres a year.
  • AUX Energy will receive CAD 93,000 to plan a biomass-powered generator project in Fort Frances.
  • Weyerhaeuser will receive CAD 33,000 to study production-line upgrades.
  • The mill discontinued newsprint production in the first quarter of 2026.
  • Combined capital cost of the three upgrade projects is estimated at C$170-180m (USD 121-128m) if the company proceeds.
  • The project is expected to create demand for over 130,000 tonnes of forest biomass per year.
  • Ontario frames the funding package as protecting over 700 direct and 3,350 indirect forestry jobs amid US tariff pressure.
Domtar mentioned Government of Ontario counterparty Thunder Bay Pulp and Paper AUX Energy counterparty Weyerhaeuser counterparty Ontario Ministry of Natural Resources counterparty Ontario Forest Industries Association mentioned Atlas Holdings counterparty Paper Excellence mentioned Ontario government counterparty
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Ontario funds engineering study to restart former Domtar mill as biomass hub

The Ontario government is investing CAD 5.1m in Bioveld North, the BMI Group subsidiary that bought the idled Espanola pulp and paper mill from Domtar in late 2025, to fund engineering and design work on a possible restart. Bioveld is contributing a further CAD 5.4m, taking the engineering programme to CAD 10.5m, as the site is studied as a bioproducts and biomass hub rather than a conventional pulp mill.

Why this mattersA restart would return capacity and jobs to a mill idled for three years, but conversion to biomass and bioproducts signals conventional pulp production may not return.

  • Ontario announced a CAD 5.1m investment on 3 September 2026 through its Forest Biomass Program.
  • Bioveld North, a BMI Group subsidiary, bought the former Domtar mill property in Espanola in late 2025.
  • The mill has been idle for three years.
  • Bioveld is contributing CAD 5.4m, bringing the total engineering programme to CAD 10.5m.
  • The funding covers engineering and design work to assess restarting the site as a 'Pulp+' bioproducts hub.
  • The plan explores biomass, renewable fuels and other green technology uses for the site.
  • The Espanola mill, idled since 2023 after more than 120 years of operation, cut about 400 direct jobs.
  • The mill's supply chain historically supported an estimated 2,000 additional jobs across 19 Ontario sawmills.
  • The restart plan targets about 800 air-dried tonnes per day of NBSK pulp and 180 short tonnes per day of specialty paper.
Domtar mentioned BMI Group Government of Ontario counterparty
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