The Canada Infrastructure Bank (CIB) has finalized a $660 million loan to Irving Pulp & Paper to support a large-scale modernization of its kraft pulp mill in west Saint John.
The initiative, known as Project NextGen, represents a $1.5 billion investment—the largest in Canada’s forest products sector since 1993. The project will replace 1970s-era equipment with state-of-the-art technology, including a new recovery boiler, steam turbine, and generator capable of producing up to 145 megawatts of renewable energy.
According to an independent economic impact study, the construction phase is expected to generate $539 million in employment income and more than 2,200 person-years of work. In the long term, the project will create over 600 new jobs across New Brunswick’s forestry supply chain, with sector-wide employment income projected to rise by 38%.
The modernization will make the mill energy self-sufficient, eliminate the use of heavy fuel oil, and cut emissions per tonne of kraft pulp by 50%. Approximately 50 megawatts of the renewable electricity will power mill operations, while surplus energy will be exported to the provincial grid through an agreement with NB Power.
Once complete, the facility will rank among the world’s top 10 softwood kraft pulp producers, increasing output by more than 70% and reinforcing New Brunswick’s forestry sector as a driver of economic growth.
The CIB noted that this loan aligns with its Clean Power mandate, designed to reduce emissions, attract private capital, and expand access to affordable, lower-emission energy for Canadians.
Irving Pulp & Paper is one of New Brunswick’s largest employers and exporters. The company operates the Saint John kraft pulp mill, a cornerstone of the province’s forestry value chain. It is part of J.D. Irving, Limited, a diversified group with operations in forestry, agriculture, construction, and services.
