Espanola pulp mill
Bioveld North Inc., a subsidiary of the Canadian-owned BMI
Group, has welcomed a $5.1 million investment from the
Government of Ontario to advance plans for the potential restart
of the Espanola pulp mill, which has been idled since 2023. The
funding is being provided through the Biomass Pathways Stream
and the Innovative Bioproduct Manufacturing and Modernization
Stream of Ontario’s Forest Biomass Program. It will support a
front-end loading engineering and design programme intended to
finalize the technical design and estimated cost of restarting
the mill.
The overall engineering programme is valued at $10.5 million,
with Bioveld North contributing an additional $5.4 million. The
funding represents an important step towards its objective of
returning the Espanola mill to production and re-establishing
the site as a major anchor for Northern Ontario’s forestry
economy.
Bioveld North has not yet established a timetable for a possible
restart and said further details will be provided as the
engineering work progresses and the remaining technical,
commercial and financial elements come together. “This mill was
never torn down or left to rot — it was kept warm, waiting,”
said Paul Veldman, CEO of The BMI Group. “Too much was left here
for us not to look at it closely and meticulously, and Ontario’s
investment makes that possible.” “Our whole business is built on
a simple idea: put wood back to work. Through our Pulp+
approach, we see Espanola capturing the full value of one of the
richest forest regions in the country: premium pulp and
specialty papers first, then biocarbon, renewable fuels and
clean power.”
A potential restart of pulp and specialty paper production
The engineering study is examining the potential restart of the
mill at a production level of approximately 800 air-dried metric
tonnes per day of premium talc-free Northern Bleached Softwood
Kraft (NBSK) pulp. The project also envisages production of
approximately 180 tonnes per day of specialty paper for
applications including medical and food grades, with the
possibility of expanding capacity over time.
The restart would represent the first phase of Bioveld North’s
Pulp+ strategy, which is designed to transform the former pulp
and paper mill into an integrated forest bioproducts hub.
Subsequent phases could include biocarbon, renewable fuels and
clean power projects developed through additional private
investment. The Pulp+ concept is intended to make greater use of
regional forest resources and existing industrial infrastructure
while diversifying the site beyond conventional pulp and paper
production.
For more than 120 years, the Espanola mill was an important part
of Northern Ontario’s forest industry and local economy. The
decision to idle the facility in 2023 resulted in the loss of
approximately 400 direct jobs and disrupted a regional forestry
supply chain that historically supported an estimated 2,000
additional jobs. The mill was also an important outlet for
residual wood fibre produced by regional sawmills.
According to Bioveld North, 19 Ontario sawmills were
historically linked to the facility, with six of them depending
on Espanola for approximately 75% of their wood-chip sales.
Following the shutdown, several sawmills were idled and much of
the remaining residual fibre has had to be transported outside
Ontario. The company argues that restarting the mill could
restore an important domestic market for this fibre and
strengthen the province’s forestry value chain at a time of
increasing trade pressure on Canadian forest products.
Source:
papnews.com
