Thunder Bay Pulp and Paper, a pulp and paper producer in Northwestern Ontario, will plan boiler and chemical-plant upgrades with more than $2.4 million in provincial funding, while two other forestry projects will receive additional funding. The province says the projects will help protect more than 700 direct jobs and more than 3.35 thousand indirect jobs, according to the Ontario Ministry of Natural Resources.
The Thunder Bay mill plans to increase daily kraft production by 11%. The higher production capacity will create demand for more than 130 thousand tonnes of forest biomass a year from regional harvesting, hauling and trucking operations.
The planned equipment changes will also reduce the mill’s use of bleaching chemicals by around 30%. Boiler upgrades will cut annual natural gas consumption by more than 5 million m3, an amount equivalent to the annual heating needs of 2 thousand Northern Ontario homes.
Ontario will provide another $125 thousand for two projects focused on forest biomass and production operations. AUX Energy will receive $93 thousand to develop plans for a biomass-powered generator project in Fort Frances, while Weyerhaeuser will receive $33 thousand to study production-line upgrades intended to reduce costs and improve efficiency and product quality.
The funding comes through Ontario’s Forest Biomass Program. Since its launch in May 2023, the program has committed more than $86 million to 74 projects, which have attracted more than $279 million in additional external funding and created more than 115 jobs.
Ontario’s forest sector generates almost $21 billion in business revenue and supports nearly 155 thousand jobs. The province’s 10-year forestry roadmap aims to maintain Ontario’s position as a G7 producer and seller of wood products and expand access to global markets.