Ontario Construction News
The Ontario government is providing $2.25 million to support commercialization of biocoal, a low-carbon fuel made from forest by-products, as part of a broader effort to expand markets for underused wood fibre.
The funding, delivered through the province’s Forest Biomass Program, will go to Toronto-based environmental services company CHAR Technologies Ltd., which is developing biocarbon pellets for use in heavy industry, including steelmaking.
According to the Ministry of Natural Resources, the investment will be used to improve the durability of biocoal during storage and transportation, a requirement for its use in industrial steel production. CHAR has been working with Hamilton-based ArcelorMittal Dofasco to test the material as a partial replacement for fossil carbon in steelmaking processes.
The province says the project will support six existing jobs, create four new positions and enable the use of up to 180,000 tonnes of forest biomass annually. The biomass is sourced from forest mill by-products and underused wood that would otherwise have limited commercial value.
CHAR operates a renewable energy facility in Thorold, Ont., where it uses high-temperature pyrolysis to convert biomass into biocarbon and other energy products. The company has said it is preparing for commercial-scale production and supply to industrial customers.
In addition to its work with Dofasco, CHAR has previously received investment from ArcelorMittal’s XCarb Innovation Fund, which focuses on technologies aimed at reducing emissions in steel production.
The Forest Biomass Program was launched in 2023 to support projects that increase the use of forest biomass, strengthen supply chains and diversify revenue streams in Ontario’s forest sector. The province says more than $50 million has been committed to over 55 projects through the program to date.
Industry groups have said expanded biomass markets could help stabilize forestry operations by creating demand for low-value wood fibre, while critics continue to raise questions about long-term supply, costs and emissions impacts associated with large-scale biomass use.
