Mercer Receives CA$20 Million From Canada to Support Peace River Pulp Mill

Mercer International Inc. announced that Canada, through Prairies Economic Development Canada (PrairiesCan), has committed CA$20 million (US$14 million) in financial support to its Mercer Peace River Pulp Ltd. subsidiary under the Regional Tariff Response Initiative.

The support includes a $1 million non-repayable contribution and a $19 million repayable contribution, with repayment scheduled to begin in 2031, subject to the contribution agreement.

Mercer Peace River operates within northern Alberta’s integrated forest products sector, using pulpwood and residual fiber from regional sawmills, including chips and bark, for pulp and energy production.

Mercer said the funding will support a broader transformation plan aimed at improving productivity and modernizing the mill. Planned work includes upgrades to prepare the facility for expanded bioenergy production and carbon capture and storage, building on work already underway, including a carbon dioxide capture demonstration unit.

Commenting on the announcement, Mercer President and CEO Carlos Bueno said:

“This investment is an important step in the continued modernization of Mercer Peace River. It supports improvements to the mill’s productivity and competitiveness and reflects the important role MPR plays within northern Alberta’s forest products economy. I also want to recognize the work of our Peace River team in advancing these improvements.”