Province grants $5.1M to advance engineering work for Espanola pulp mill restart

What’s happening

• The province is giving $5.1 million to Bioveld North to fund engineering and evaluation work aimed at restarting the idled Espanola pulp and paper mill in northeastern Ontario.

Who it affects and where

• This work focuses on the Town of Espanola and the surrounding region. It targets workers, local sawmills, contractors, Indigenous businesses, and regional service providers.

By the numbers

• Funding: $5.1 million (from the Forest Biomass Program).
• Potential jobs (if restart proceeds): about 400 direct jobs and about 2,000 indirect jobs.
• Potential wood demand: up to 1.8 million cubic metres of sustainably sourced wood per year.
• Program context: the Forest Biomass Program can invest up to $20 million per year; since 2023 it has committed more than $70 million to 68 projects, secured about $260 million in external funding, and created more than 110 jobs.

What the funding will do

• Pay for detailed engineering, evaluation and design work to test the viability of restarting the mill.
• Recommend efficiency and reliability upgrades and identify opportunities to diversify into renewable fuels, biochar and other bioproducts to improve competitiveness.

Relevant facts from the release

• Bioveld North (a BMI Group subsidiary) acquired the former Domtar Espanola Mill in 2025 and aims to modernize it as a regional bioeconomy hub.
• The province says this investment supports its Roadmap to Protecting Ontario’s Forest Sector, a 10-year plan to defend, adapt and grow the industry.

Why it matters

• Early-stage public funding is intended to attract private investment, revive regional supply chains, and create conditions for long-term jobs and economic activity in northern Ontario.