Ontario is investing over $17.3 million in four forestry projects to modernize forest sector manufacturing, increase use of mill by-products and underused wood, and strengthen supply chains, the Ministry of Natural Resources reported.
The projects will create six jobs, protect over 320 existing positions and support more than 600 indirect jobs. The funding comes through the Forest Sector Investment and Innovation Program and the Forest Biomass Program.
Interfor is receiving over $9.6 million to modernize its Elk Lake sawmill with a forest biomass-powered energy system. The project will increase production by 27%, cut natural gas use by 80% and reduce annual operating costs by nearly $3 million.
GreenFirst Forest Products is receiving over $5.9 million for a new production line at its Chapleau sawmill. The project will increase productivity by 24%.
The company is also receiving more than $1.6 million to plan a biofuel facility. The project has long-term potential to create 30 direct jobs and 70 indirect jobs.
Atlantic Power is receiving over $180,000 to upgrade the control system at the Calstock Power Plant. The work will maintain bioenergy generation and provide an outlet for biomass and mill by-products from the Hearst area.
The four projects have the potential to add annual demand for over 500,000 tonnes of forest biomass. The additional demand is expected to create business opportunities for harvesting, hauling and trucking.
Close to $90 million has been approved under the Forest Sector Investment and Innovation Program, with an added $420 million in external investments. Since its 2023 launch, the Forest Biomass Program has committed over $83 million to 71 projects, securing over $276 million in additional external funding and creating more than 115 new jobs.
The forest sector generates close to $21 billion in business revenue and supports close to 155,000 jobs in Ontario.