Ontario Invests $6.2 Million to Boost Forestry Jobs and Innovation in Northwestern Ontario

Ontario commits over $6 million to support biomass innovation, protect forestry jobs, and boost northern community growth.

THUNDER BAY — The Ontario government has announced a $6.2 million investment to protect jobs and strengthen the forestry sector in Northwestern Ontario, focusing on research, innovation, and modernization projects designed to create economic growth and new market opportunities.

The funding, delivered through the province’s Forest Biomass Program, will help unlock underused wood and mill by-products, known as forest biomass, to increase productivity and develop sustainable forest-based products. The initiative aims to ensure the sector remains resilient in the face of U.S. tariffs and other global challenges.

Key Investments

Three major projects are among the recipients of this funding:

• Centre for Research and Innovation in the Bioeconomy (CRIBE): Receiving $5 million to accelerate forest sector growth by developing and commercializing innovative wood-based products and fostering cross-industry collaboration.

• Bingwi Neyaashi Anishinaabek (Sand Point First Nation): Receiving $250,000 to study local biomass supply and purchase equipment for a community heating system using forest biomass fuel.

• Thunder Bay Pulp and Paper: Receiving $87,750 to assess current technology and design upgrades to its boiler, fibre recovery, and sludge processing systems.

These projects are expected to create good-paying jobs locally while opening new markets for Ontario forest businesses, strengthening regional economies, and expanding opportunities for Indigenous communities in the forest sector.

Ontario’s Forestry Growth Plan

This investment builds on the province’s Forest Biomass Action Plan (2022), which aims to develop new uses for forest biomass, supporting sustainable growth in the industry. To date, Ontario has invested over $45 million in more than 55 biomass projects and provides up to $20 million annually for similar initiatives.

The forest sector generated $21.6 billion in revenue from manufactured goods and services in 2023 and supported over 128,000 direct and indirect jobs in 2024. The province says these investments will help ensure Ontario remains competitive and continues to lead in sustainable wood product innovation.

Industry Response

Ian Dunn, President and CEO of the Ontario Forest Industries Association, said the announcement “will be instrumental in the sector’s continued innovation and diversification,” adding that maximizing forest biomass use strengthens local communities and supports a fully made-in-Ontario supply chain.

Scott Jackson, CEO of CRIBE, noted the funding will help position Ontario as a global leader in the forest-based bioeconomy. Chief Paul Gladu of Bingwi Neyaashi Anishinaabek highlighted the support for sustainable heating projects in First Nations communities. Thunder Bay Pulp and Paper CEO Bill MacPherson emphasized that the investment will benefit thousands of workers throughout Northwestern Ontario’s forestry supply chain.

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