Ontario Construction News staff writer
Four projects aimed at modernizing forest-sector manufacturing, increasing the use of forest biomass and strengthening supply chains will share $17.3 million from the province.
Funding is expected to create six new jobs, protect more than 320 existing positions and support more than 600 indirect jobs and reduce the impact of U.S. tariffs by making the industry more competitive and diversified.
The largest award is going to Interfor, which is receiving more than $9.6 million to modernize its Elk Lake sawmill in northeastern Ontario.
The project will install a forest biomass-powered energy system that is expected to increase production by 27 per cent, reduce natural gas consumption by 80 per cent and lower annual operating costs by nearly $3 million.
It will also increase demand for forest biomass, including mill by-products and underused wood fibre.
“Our Elk Lake operation plays an important role in supporting jobs, families, and local businesses in northeastern Ontario,” said Stuart Card, vice-president, Eastern Operations, Interfor. “This investment will help strengthen the mill’s long-term competitiveness while supporting the broader forest sector value chain, including harvesting contractors, transportation providers, suppliers, and communities across the region.”
GreenFirst Forest Products will receive more than $5.9 million to install a new production line at its Chapleau operation. The project is expected to increase productivity by 24 per cent.
Another $1.6 million will be used to plan work for a potential biofuel facility that could diversify the operation and create up to 30 direct and 70 indirect jobs over the long term.
“This is an investment in the people of Chapleau,” said Joël Fournier, CEO of GreenFirst Forest Products. “Modernizing the sawline and planer secures the mill’s competitiveness for the long run, and the biofuel feasibility work could bring a whole new industry to the region, up to 30 direct jobs from wood fibre that today has limited markets. We’re proud to build that future with the province.”
Atlantic Power is receiving more than $180,000 to upgrade the control system at the Calstock Power Plant. Work is intended to maintain reliable bioenergy generation while supporting a local market for forest biomass.
Together, the projects could generate annual demand for more than 500,000 tonnes of forest biomass, according to the province, creating additional business opportunities for forestry contractors, haulers and trucking companies while making better use of wood that might otherwise have limited markets.
About $90 million has now been approved through the Forest Sector Investment and Innovation Program, leveraging an additional $420 million in external investment to support forest-sector productivity, the province said.
Ontario’s forest sector generates nearly $21 billion in business revenue and supports close to 155,000 jobs across the province.
