Ontario government

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.