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Ontario Funds Espanola Pulp Mill Restart Study With C$5.1M
Ontario’s C$5.1 million commitment will support engineering and feasibility work for the idled Espanola pulp mill, with Bioveld North contributing another C$5.4 million to bring the total engineering program to C$10.5 million.
By Paul Ploumis
Published September 8, 2026
Key Points
- Ontario will provide C$5.1 million toward engineering and feasibility work for the Espanola pulp mill.
- Bioveld North will contribute C$5.4 million, bringing total investment in the engineering program to C$10.5 million.
- The facility has been idle since 2023, and its closure eliminated almost 400 direct positions.
- The proposed production plan targets around 800 air-dried metric tonnes of Northern Bleached Softwood Kraft pulp per day and approximately 180 short tonnes of specialty paper daily.
MONTREAL (Scrap Monster): Plans to bring the idled Espanola pulp mill in Northern Ontario back into operation have received a significant funding 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 support front-end engineering and design needed to determine the technical requirements and cost of restarting the facility.
Engineering Work Will Define Restart Requirements
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 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 for medical and food-related applications.
Restart Forms First Stage of Pulp+ Strategy
The proposed restart represents the first stage of the company’s broader “Pulp+” strategy. Future phases are planned to include biocarbon, renewable fuels and clean power production.
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 stakeholders including employees, local sawmills, Indigenous communities and the Town of Espanola.
