Ontario is providing more than C$2.4 million to support planning for boiler and chemical plant upgrades at Thunder Bay Pulp and Paper, with the proposed projects expected to increase kraft pulp production and reduce energy and chemical use.
The funding, provided through Ontario’s Forest Biomass Program, will support planning and engineering work as Thunder Bay Pulp and Paper evaluates several projects aimed at lowering manufacturing costs and improving productivity.
According to the province, the proposed upgrades could increase daily kraft pulp production by 11% and create demand for more than 130,000 tonnes of forest biomass annually. The additional fibre demand would support harvesting, hauling and trucking activity across Northwestern Ontario.
The projects could also improve the mill’s energy and resource efficiency. Upgraded equipment is expected to reduce bleaching chemical use by approximately 30%, while boiler modernization could cut annual natural gas consumption by more than five million cubic metres.
“Thunder Bay Pulp and Paper is evaluating several strategic projects that are focused on lowering manufacturing costs and increasing productivity,” said CEO Norm Bush. He added that the projects are intended to strengthen the mill’s position as a competitive, low-cost facility.
The provincial funding comes as Thunder Bay Pulp and Paper continues to evaluate investments aimed at strengthening its kraft pulp and renewable energy operations. The mill discontinued newsprint production earlier this year amid declining North American demand and rising input costs.
Ontario said the investment is part of its Forest Biomass Program, which supports projects aimed at expanding the use of mill by-products and underused forest fibre. Since the program was launched in 2023, the province has committed more than C$86 million to 74 projects.
Thunder Bay Pulp and Paper operates a pulp and energy facility in Thunder Bay, Ontario, producing northern bleached softwood kraft (NBSK) pulp and renewable energy. The company discontinued newsprint production in 2026 as it shifted its focus toward pulp and energy operations.
