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.