Ontario Invests $5.5M in Forest Biofuel Innovation

Ontario just found a way to help forests, create jobs, and clean up aviation all at once.

The province announced $5.5 million in funding for Greenwater Technology to build a pilot plant that converts forest waste into renewable diesel and sustainable aviation fuel. Instead of letting sawdust and underutilized wood sit unused, this Thunder Bay facility will transform these materials into clean fuel for planes and trucks.

The timing couldn't be better for Ontario's forest sector. Mills across the province have struggled with economic pressures and trade challenges, leaving valuable biomass materials underused while transportation industries scramble to find cleaner fuel options.

Greenwater Technology is tackling both problems with one solution. The company plans to convert an existing building at Thunder Bay Pulp and Paper into a commercial testing facility that will figure out which wood materials make the best biofuels and prove the technology works at scale.

The $5.5 million comes from two sources: $5 million from the Forest Biomass Program and $500,000 from the Northern Ontario Heritage Fund Corporation. This provincial funding helps launch Greenwater's larger $15.5 million project to make the facility fully operational.

Once the pilot phase succeeds, Greenwater plans something even more innovative. The company wants to build future biofuel production plants right at existing mills, creating efficient on-site uses for forest waste and opening new revenue streams for forestry businesses.

The Ripple Effect

This investment does more than fund one facility. It creates a model for turning industrial byproducts into valuable clean energy across Ontario's forest sector.

Forest companies gain new customers for materials they previously couldn't sell. Aviation and trucking companies get locally produced renewable fuel. New skilled jobs emerge in cleantech manufacturing and biomass supply chains.

Ontario's forest sector already generates billions in revenue and supports thousands of jobs. Adding biofuel production strengthens this economic foundation while positioning the province as a leader in renewable forest products.

The initiative also helps Canada meet aviation industry commitments to reduce carbon emissions. Airlines worldwide are searching for sustainable fuel sources, and Ontario now has technology to supply them using resources already growing in provincial forests.

Every ton of wood waste that becomes clean fuel is a ton that doesn't become pollution. Every new biofuel plant at a mill means more stable jobs in communities that depend on forestry. Every successful pilot project proves that environmental solutions and economic growth can happen together.

Thunder Bay's new facility will spend the next few years testing, refining, and proving this technology works. If successful, it could transform how Ontario's forests contribute to both the provincial economy and global climate solutions.