Espanola Pulp Mill Restart Gets Major Funding Boost

Paper Recycling | 2026-09-08 05:51:02 | By Paul Ploumis

Bioveld North Inc., part of Canadian-owned BMI Group, will provide another C$5.4 million, taking the total investment in the engineering work to C$10.5 million.

Summary

C$10.5 million restart study funded: Ontario is providing C$5.1 million, while Bioveld North will contribute C$5.4 million toward front-end engineering and design work for the Espanola pulp mill, which has been idle since 2023.
Pulp and specialty paper production planned: The former Domtar mill is expected to restart with initial production of around 800 air-dried metric tonnes of Northern Bleached Softwood Kraft pulp per day, alongside approximately 180 short tonnes of specialty paper daily for medical and food applications.
Restart is the first phase of a broader strategy: The project forms the first stage of BMI Group’s “Pulp+” strategy, with future plans involving biocarbon, renewable fuels, and clean power. The company also intends to consult employees, local sawmills, Indigenous communities, and the Town of Espanola.

SEATTLE (Scrap Monster): Plans to bring the idled Espanola pulp mill in Northern Ontario back into operation have received a major boost after the provincial government committed C$5.1 million toward an engineering and feasibility program. The facility has been idle since 2023.

Bioveld North Inc., part of Canadian-owned BMI Group, will provide another C$5.4 million, taking the total investment in the engineering work to C$10.5 million. The funding will help complete front-end engineering and design needed to determine the technical requirements and cost of restarting the facility.

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The former Domtar mill was acquired by Bioveld North in late 2025. The closure of the mill had eliminated almost 400 direct positions.

The company plans to restart production of premium Northern Bleached Softwood Kraft pulp, with a planned initial production of around 800 air-dried metric tonnes per day. The project also includes plans for approximately 180 short tonnes of specialty paper daily, serving medical and food-related applications.

The proposed restart represents the first stage of the company’s broader “Pulp+” strategy. It plans to add biocarbon, renewable fuels and clean power production in future phases.

BMI Group CEO Paul Veldman said the government funding will allow the company to examine the facility carefully and develop a viable restart plan, in consultation with all stakeholders including employees, local sawmills, indigenous communities and the Town of Espanola.