Ontario Investing $6.2 Million to Protect Forest Sector Jobs and Workers in Northwestern Ontario

Press Release

July 25, 2025

Investment will support economic growth, job creation and innovation in Ontario’s forestry sector

THUNDER BAY — The Government of Ontario is protecting workers and jobs in the forest sector by investing over $6.2 million in research, innovation and modernization projects in Northwestern Ontario. As part of the government’s plan to protect Ontario, the investments from the Forest Biomass Program will boost Ontario’s forest sector’s competitive advantage by creating new jobs, increasing productivity and opening up opportunities for new revenue streams in new markets for underused wood and mill by-products, known as forest biomass.

“Our government is proud to support world-class innovation in Ontario’s forest sector that helps the industry grow, create jobs and build prosperity in northern communities that depend on a strong forest sector,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “We’re taking bold, decisive action to protect good-paying jobs and economic growth in the face of US tariffs, including making targeted investments that ensure our forest sector is resilient for whatever else comes our way.”

Ontario’s investment is supporting eight projects related to the use of underused wood and mill by-products, known as forest biomass:

• The Centre for Research and Innovation in the Bioeconomy, which is receiving $5,000,000 to accelerate forest sector growth by developing and commercializing innovative forest-based products, assisting with technology development and fostering cross-industry collaboration.
• Bingwi Neyaashi Anishinaabek, which is receiving $250,000 to support the development of a community heating system by funding a study of local biomass supply and purchasing equipment to convert forest biomass to fuel.
• Thunder Bay Pulp and Paper, which is receiving $87,750 to help support the facility’s modernization by funding two studies assessing current technology and designing upgrades to the boiler, fibre recovery and sludge processing systems.

These projects will help create good-paying local jobs while opening new markets for forest sector businesses. In addition, they will strengthen Northwestern Ontario’s economy by building strong regional markets for mill by-products which will create added demand for the harvesting, hauling and trucking industries, and develop new opportunities for Indigenous communities to participate in the growing forest industry.

Under the Forest Biomass Action Plan released in 2022, the government is developing the untapped potential of forest biomass to create new opportunities for forest sector growth, including investing over $45 million to-date under the Forest Biomass Program to support more than 55 projects.

Ontario’s Forest Biomass Program invests up to $20 million each year in projects to increase wood harvest, create forest sector opportunity and find new uses for wood in collaboration with stakeholders, industry and Indigenous communities.

Quick Facts

• This investment builds on Associate Minister Holland’s recent announcements of Forest Biomass Program funding in May and July 2025.
• Ontario’s Forest Biomass Program investments complement funding through the Forest Sector Investment and Innovation Program, which has approved close to $72 million in investments, giving businesses the tools and technology to create jobs and unlock greater productivity.
• Ontario’s forest sector generated $21.6 billion in revenue from the sale of manufactured goods and services in 2023 and supported over 128,000 direct and indirect jobs in 2024.
• Wood produced from Ontario’s Crown forests is sustainably sourced and renewable. Wood is a renewable resource, a clean energy source, and a sustainable – and biodegradable – alternative to single-use plastics.

Quotes

“The Ontario Forest Industries Association (OFIA) applauds continued investments through the Forest Biomass Program. Today’s exciting announcements will be instrumental in the sector’s continued innovation and diversification. Maximizing the use of forest biomass will strengthen forest-sector-dependent communities, foster job creation, and support a fully made-in-Ontario supply chain for sustainable bioproducts.”

– Ian Dunn, R.P.F
President and CEO, Ontario Forest Industries Association

“We are extremely grateful to Minister Holland and the Ministry of Natural Resources for their ongoing support of the Centre for Research & Innovation in the Bio-Economy. We share their vision and commitment to growing Ontario’s forest-based bio-economy and this funding will enable ongoing successful collaboration with our industry and government partners as we continue to position Ontario as a global leader in innovation.”

– Scott Jackson
CEO, CRIBE

“Bingwi Neyaashi Anishinaabek (Sand Point First Nation) would like to thank Associate Minister Holland and the MNR’s Forest Biomass Program for their support for BNA’s District Heating Project. This initiative will utilize chipped wood slabs from our Sawmill operation to heat our homes and buildings through a central biomass system located in the community. With the critical support from our partners in government, important, innovative and sustainable projects like this can become a reality for First Nation communities across Ontario.”

– Chief Paul Gladu
Bingwi Neyaashi Anishinaabek

“Thunder Bay Pulp & Paper is the anchor mill of Northwestern Ontario, supporting nearly 7,000 jobs throughout the supply chain. This investment from the Forest Biomass Program strengthens our facility, benefits our workers and the regional economy, and brings Ontario and Canada one step closer to reclaiming our position as global leaders in wood products. We deeply appreciate the leadership of Minister Holland in advancing sustainable forest innovation.”

– Bill MacPherson
CEO, Thunder Bay Pulp and Paper

Additional Resources

• Ontario Funding Forest Biomass Innovation in the Northwest
• Forest Biomass Program
• Forest Biomass Action Plan
• Sustainable Growth: Ontario’s Forest Sector Strategy

Related Topics

Business and Economy

Information about Ontario’s economy and how to do business here. Includes economic development opportunities, research funding, tax credits for business and the Ontario Budget. Learn more

Environment and Energy

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Jobs and Employment

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Rural and North

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Media Contacts

Rebecca Petch
Minister’s Office
Rebecca.Petch@ontario.ca

Media Relations
Communications Services Branch
MediaDesk.MNRF@ontario.ca

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