Ontario Invests More Than CA$3.6 Million in Biomass Projects

Ontario has announced more than CA$3.6 million (US$2.56 million) in funding for forest biomass projects across Northern Ontario, supporting expanded use of bark, wood chips, and other forest byproducts for bioenergy and value-added products, Northern Ontario Business reported (9-21-26).

On September 17, Ontario Associate Forestry Minister Kevin Holland announced more than $2.5 million for Thunder Bay Pulp and Paper to upgrade its boilers and chemical plant. The province said the improvements will increase daily kraft production by 11% and create a market for more than 130,000 tons of forest biomass annually.

The new equipment is also expected to reduce the company’s use of bleaching chemicals by 30% and cut annual natural gas consumption by more than 5 million m3.

Other funding announced for biomass-related projects in northwestern Ontario included:

  • AUX Energy: $92,500 to develop plans for a biomass-powered generator project intended to increase energy security in Fort Frances.
  • Weyerhaeuser: $32,650 to study production-line upgrades aimed at reducing costs and improving efficiency and product quality.

On September 18, Holland announced $1.1 million for five Indigenous-led projects while visiting Lake Nipigon Forest Management Inc.’s Biohub site in Hurkett, northeast of Thunder Bay. The developing wood-processing and biomass-storage facility is operated by a forestry cooperative representing four First Nation communities and previously received a $250,000 provincial investment.

The latest Indigenous-led project funding included:

  • Constance Lake First Nation: $250,000 to develop plans for an adaptable energy system that converts forest biomass into biofuel.
  • Apitipi Anicinapek Nation: $250,000 to investigate forestry opportunities and support workforce development through skills assessments and training workshops.
  • Webequie First Nation: $250,000 for planning and capacity-building to support development of a community-operated 25 MW electricity facility powered by forest biomass.
  • Wanagekong Biiwega’iganan Clean Energy Corporation: $250,000 to study biomass supply, complete permitting, and build partnerships for a planned biorefinery.
  • Kasabonika Lake First Nation: $158,750 to plan a sustainable wood-energy and sawmill program intended to reduce reliance on diesel fuel and improve energy security.

FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.