Ontario investing more than CAD$5 million to unlock new markets for biofuel

The Ontario government announced May 8 that it is investing CAD$5.5 million (USD$4.02 million) to help Greenwater Technology produce renewable diesel and sustainable aviation fuel (SAF) using mill byproducts 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, the 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:

• CAD$5 million (USD$3.7 million) 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.

• CAD$500,000 (USD$ 365,698) under the Northern Ontario Heritage Fund Corp., 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, the 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.

The forest sector is an essential industry that generates close to CAD$21 billion (USD$15.4 billion) in business revenue and supports close to 155,000 jobs.

Greenwater’s CAD$15.5 million (USD$11.3 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 CAD$55 million (USD$40.2 million) in targeted investments to more than 55 projects, securing over CAD$115 million (USD$84.1 million) in additional external funding and creating more than 110 new jobs.

Since June 2018, the NOHFC has invested more than CAD$1 billion (USD$731.4 million) in 8,423 projects in Northern Ontario, leveraging more than CAD$3 billion (USD$2.2 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.

“Thunder Bay is the perfect location to build this demonstration facility,” said James Irving, the president of Greenwater. “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 fiber 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.”