Espanola Pulp Mill Restart Gets Major Funding Boost
Paper Recycling | 2026-09-08 05:51:02
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.
By Paul Ploumis
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.
POLL
What could be the biggest long-term benefit of restarting the Espanola pulp mill?
Frequently Asked Questions
- How much funding has been committed to the Espanola pulp mill restart study?
The Ontario government has committed C$5.1 million toward the engineering and feasibility programme. Bioveld North Inc., a subsidiary of BMI Group, will provide another C$5.4 million, bringing the total investment in the engineering work to C$10.5 million.
- What will the engineering and feasibility programme determine?
The programme will involve front-end engineering and design work to establish the technical requirements, scope, and estimated costs associated with restarting the idled mill. The findings are expected to help BMI Group develop a viable plan for resuming operations.
- What production is planned when the Espanola mill restarts?
BMI Group plans to produce premium Northern Bleached Softwood Kraft pulp, initially targeting approximately 800 air-dried metric tonnes per day. The project also envisions specialty paper production of around 180 short tonnes per day, targeting medical and food-related applications.
