Ontario Investing More Than $5 Million to Unlock New Markets for Biofuel

Press Release

May 08, 2026

Investment will protect forest sector workers and businesses by creating new opportunities for made-in-Ontario forest products in emerging markets

THUNDER BAY — The Ontario government is investing $5.5 million to help Greenwater Technology produce renewable diesel and sustainable aviation fuel using mill by-products and underused wood. This investment will support new opportunities for made-in-Ontario forest products, create new revenue streams to drive growth in forestry and empower the aviation and transportation industries to adopt sustainable fuels. As part of the government’s plan to protect Ontario, the government is making strategic investments to help forest sector businesses adapt, compete and grow to stay resilient in the face of U.S. tariffs.

“Under our government’s forest sector roadmap, we’re taking action to enhance Ontario’s reputation as a G7 leader in forest product manufacturing,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “We are proud to invest in new technology that will deliver renewable fuels to power industries, accelerate productivity and grow business opportunity in Thunder Bay and across Ontario’s forest sector.”

The government’s investment in Greenwater’s cleantech pilot plant will create three new good-paying jobs, while supporting new opportunities for forest sector businesses to supply biofuels to growing markets in aviation and transportation. The investment includes:

• $5,000,000 under the Forest Biomass Program’s Innovative Bioproduct Manufacturing funding stream, which develops technologies to increase biomass use, diversify the forest sector and build the industry’s competitive advantage in changing markets.

• $500,000 under the Northern Ontario Heritage Fund Corporation (NOHFC), which provides investments to protect northern industries and jobs, mitigate the impacts of U.S. tariffs and trade disruptions and secure new opportunities for the long-term prosperity of Northern Ontario.

After bringing the technology to market, Greenwater plans to integrate biofuel plants at anchor mills, providing an on-site use for forest biomass that would increase productivity, strengthen forestry supply chains and generate new revenue streams.

“By pursuing new ideas, businesses like Greenwater are diversifying their products, turning forest biomass into alternatives to conventional fuels,” said George Pirie, Minister of Northern Economic Development and Growth. “Through the NOHFC, our government is supporting innovation in northern industries like forestry to help them grow, pivot and open up new markets for wood residuals, helping to build a stronger, more self-reliant North.”

Investing in cutting-edge technologies delivers on the Roadmap to Protecting Ontario’s Forest Sector, the government’s 10-year roadmap to help the forest sector unlock new markets for next-generation forest products, protect forestry workers and ensure the sector remains strong for generations to come. The roadmap sets out three strong pillars of action: Defend forest sector workers and businesses from unfair trade practices, Adapt the industry to shifting global conditions and Grow investment, markets and demand for Ontario wood.

Quick Facts

• The forest sector is an essential industry that generates close to $21 billion in business revenue and supports close to 155,000 jobs.
• Greenwater’s $15.5 million project will convert a building at Thunder Bay Pulp and Paper into a commercial-scale testing facility to demonstrate its cleantech’s cost-effectiveness and identify the ideal wood feedstock to maximize biofuel quality.
• Since its launch in May 2023, the Forest Biomass Program has committed over $55 million in targeted investments to more than 55 projects, securing over $115 million in additional external funding and creating more than 110 new jobs.
• Since June 2018, the NOHFC has invested more than $1 billion in 8,423 projects in Northern Ontario, leveraging more than $3 billion in investment and creating or sustaining over 13,000 jobs.
• 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

“Thunder Bay is the perfect location to build this demonstration facility. It has everything – from research support at Lakehead University, fabrication at Venshore Mechanical, design support with Nordmin Engineering, a location like the Thunder Bay Pulp and Paper facility and, of course, wood fibre from the local forestry operations. Above all, it has experienced people to help us build, maintain and operate the facility. We are very appreciative to the Government of Ontario for recognizing the value of this project – and being an early champion in making it a reality.”
– James C. Irving
President of Greenwater Ltd.

“Thunder Bay Pulp and Paper is excited to be the host site for Greenwater’s bio-energy pilot plant. This project reflects the growing opportunity to transform Ontario’s sustainably managed wood fibre into clean energy and high-quality jobs for Northern Ontario. As traditional paper demand evolves, initiatives like this position our region at the forefront of innovation, creating shared economic and environmental benefits for our companies, the City of Thunder Bay, local First Nations, and the Province.”
– Norm Bush
CEO, Thunder Bay Pulp and Paper

“Our investment in Greenwater reflects our confidence that innovation drives economic growth in Ontario’s forestry sector. Thank you to Thunder Bay Pulp and Paper for hosting the demonstration plant. BMI is proud to invest alongside Business EQ in a project that puts wood back to work.”
– Paul Veldman
CEO, BMI

“Today’s announcement supports the vision of growing Ontario’s forest sector and our bio-economy through innovation and cross sectoral collaboration. Support for these types of projects is critical in the province’s ongoing efforts to achieve energy security and position our economy for long-term success.”
– Scott Jackson
CEO, Centre for Research and Innovation in the Bio-economy (CRIBE)

“This investment in Greenwater Technology by the Ontario Government represents new opportunities for Thunder Bay and our region. Supporting innovation in our forestry sector’s bioeconomy helps support communities like Thunder Bay with deep roots in the forestry sector, chart new paths in an ever-changing business landscape.”
– Ken Boshcoff
Mayor of Thunder Bay

“Today’s investment in the Greenwater Ltd. Pre-Commercialization Demonstration Facility marks an important step forward in unlocking the full potential of forest biomass in Northwestern Ontario. Through the Forest Biomass Program and support from the Northern Ontario Heritage Fund Corporation (NOHFC), this project is helping to turn innovation into opportunity – creating jobs, strengthening our forestry sector, and advancing a more sustainable, value-added future for our region. NOMA has long advocated for investments like this that support local industry, drive economic growth, and ensure our forest resources continue to deliver benefits for communities across the North.”
– Rick Dumas
President, Northwestern Ontario Municipal Association (NOMA)

“Lakehead University commends the Government of Ontario and industry partners for their leadership in advancing this investment in clean fuel innovation in the North. We are proud to serve as a key technical partner to Greenwater Ltd., leveraging our world-class Biorefining Research Institute to move this innovative wood fibre renewable diesel from initial concept to real-world application. By providing access to our specialized facilities, rigorous analytical support, and expert talent required for scale-up, we are dedicated to helping fuel Greenwater Ltd.’s continued growth.”
– Dr. Langis Roy
Vice-President, Research and Innovation, Lakehead University

“The Thunder Bay Community Economic Development Commission is excited to have the Greenwater facility located in Thunder Bay. Greenwater’s leadership on this project demonstrates how anchor mills can be utilized to support innovation within the forest sector resulting in new bioproducts that can be brought to the market.”
– Jamie Taylor
CEO, Thunder Bay Community Economic Development Commission (CEDC)

Additional Resources

• Roadmap to Protecting Ontario’s Forest Sector
• Forest Biomass Program
• Forest Sector Investment and Innovation Program
• Forest Biomass Action Plan

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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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