Ontario Investing Over $17 Million to Protect Forestry Jobs in the North
Provincial funding will support four projects to increase productivity and strengthen forestry supply chains
The Ontario government is building a strong and self-reliant economy by investing over $17.3 million in four projects that will modernize forest sector manufacturing, enhance the industry’s competitive advantage and strengthen forestry supply chains by using more mill by‑products and underused wood known as forest biomass. The projects will create six good-paying jobs, protect over 320 existing positions and support more than 600 indirect jobs. This funding is part of the government’s plan to protect Ontario forestry workers in the face of recent U.S. tariff attacks by building a more resilient, innovative and diversified forest sector, ready to compete in global markets.
“Our government is delivering on our forest sector roadmap by protecting jobs, modernizing businesses and unlocking markets for Ontario’s forest products,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “We are making strategic investments to build on the forest sector’s strengths and put our province at the centre of the global forest economy.”
The Forest Sector Investment and Innovation Program and Forest Biomass Program investments will support four projects advancing the Roadmap to Protecting Ontario’s Forest Sector, the government’s 10-year plan to Defend, Adapt and Grow the province’s cornerstone industry:
- Interfor is receiving over $9.6 million to modernize the Elk Lake sawmill with a forest biomass-powered energy system that will increase production by 27 per cent, cut natural gas use by 80 per cent and reduce annual operating costs by nearly $3 million
- GreenFirst Forest Products is receiving over $5.9 million for a new production line to increase productivity by 24 per cent and more than $1.6 million to plan a biofuel facility that will diversify operations, with long-term potential to create 30 direct and 70 indirect jobs
- Atlantic Power is receiving over $180,000 to upgrade the Calstock Power Plant’s control system, maintaining reliable bioenergy generation and a strong local market for biomass
Ontario’s investments will build a more integrated and resilient forest sector, ready to compete in changing global markets. The projects have the potential to add yearly demand for over 500,000 tonnes of forest biomass, accelerating forest sector productivity and reinforcing industry supply chains by creating business opportunity for harvesting, hauling and trucking.
These investments advance the Roadmap to Protecting Ontario’s Forest Sector, the government’s 10-year plan to Defend, Adapt and Grow the industry and maintain Ontario’s position as a G7 leader in making and selling forest products. The province will continue to make strategic investments that create and protect forestry jobs and ensure the long-term sustainability of the sector.
Quick Facts
- Close to $90 million in funding has been approved under the Forest Sector Investment and Innovation Program, securing an added $420 million in external investments to reinforce forest sector productivity.
- Since its 2023 launch, the Forest Biomass Program has committed over $83 million in targeted investments to 71 projects, securing over $276 million in additional external funding and creating more than 115 new jobs.
- The government released the Roadmap to Protecting Ontario’s Forest Sector on April 28, setting out a 10-year plan to maintain Ontario’s position as a G7 leader in making and selling wood products, with the competitive excellence and transformative technologies to unlock new global markets.
- The forest sector is an essential industry, generating close to $21 billion in business revenue and supporting close to 155,000 jobs.
