Ontario Investing $2.2 Million to Unlock New Markets for Forest Biocoal

Investment will protect forest sector workers and businesses by creating new supply chain and revenue streams for made-in-Ontario forest products

The Ontario government is investing $2.25 million through the Forest Biomass Program to help CHAR Technologies commercialize biocoal, a rapidly emerging low-carbon fuel derived from forest mill by-products and underused wood. This work will develop a new supply chain for made-in-Ontario forest products, create new revenue streams to drive growth in forestry and empower heavy industries to adopt sustainable fuels. As part of its plan to protect Ontario, the government is making strategic investments to help forest sector businesses adapt, compete and grow to stay resilient in the face of U.S. tariffs.

“Our government is protecting Ontario’s forest sector workers and businesses by empowering innovative businesses to create new markets and revenue opportunities from forest biomass,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “By investing in emerging technologies, we are building strong local supply chains to create stable, long-term opportunities for workers and communities, and driving the growth of made-in-Ontario forest products. We are ready to lead and establish Ontario as a global leader in biocoal.”

This Forest Biomass Program investment will help CHAR Technologies improve biocoal’s storage and transport durability, needed for use in steelmaking at ArcelorMittal Dofasco. This project will support six existing jobs, create four new jobs and build a more productive and diversified forest sector by putting up to 180,000 tonnes of forest biomass to use each year. It will also establish a new supply chain with significant potential for future growth: collaboration between the forest sector and steel industry will demonstrate biocoal’s potential to other heavy industries, supporting the development of a growing biofuel network.

“We thank the Ontario government for its support to accelerate CHAR Technologies’ work in advancing biocarbon pellets as a made-in-Ontario, drop-in replacement for fossil carbon in steelmaking,” said Andrew White, CEO of CHAR Technologies. “This investment strengthens the market for forest biomass, supports jobs in the North, and positions us to increase supply to local partners and to begin exporting Ontario-made biocarbon to Europe, further strengthening the province’s trade opportunities.”

Since its 2023 launch, the Forest Biomass Program has committed over $50 million to more than 55 projects supporting the Forest Biomass Action Plan, a key element of Ontario’s actions to drive forest sector growth. Today’s investment accompanies the release of two progress reports showcasing the province’s growing forest bioeconomy:

• The Forest Biomass Action Plan Interim Report documents key successes in the action plan’s ongoing implementation, equipping the forest sector to maximize the value of wood, develop new markets and create jobs
• The Forest Biomass Action Plan Research Summary Report highlights new and emerging biomass uses which will provide added economic and environmental benefits to Ontario’s workers, families and businesses

In response to increased U.S. softwood lumber duties and tariffs, the government continues to protect forestry jobs and build a stronger, more resilient forest sector, delivering on commitments to workers, businesses and communities set in the Forest Biomass Action Plan and Sustainable Growth: Ontario’s Forest Sector Strategy.

Quick Facts

• The province has also launched a new working group to protect Ontario by driving innovation and building stronger, more resilient forest sector supply chains. The working group will guide the implementation of the Advanced Wood Construction Action Plan, promoting the use of more wood-based building materials that can help build more homes and buildings faster and create a more resilient forestry sector.
• Ontario’s Forest Biomass Program invests up to $20 million each year in projects to increase wood harvest, create forest sector opportunity and find new uses for wood in collaboration with stakeholders, industry and Indigenous communities.
• The Ontario government invested $6.4 million under the Forest Sector Investment and Innovation Program to expand CHAR Technologies’ Thorold facility, which produces renewable natural gas and biocarbon via high-temperature pyrolysis: heating wood and organic by-products in a low-oxygen environment.
• To date, the Forest Sector Investment and Innovation Program has provided over $72 million in funding, leveraging $425 million in new investment to help Ontario forestry companies adopt innovative technologies and stay competitive in the global market.
• Ontario’s forest sector generated $21.6 billion in revenue from the sale of manufactured goods and services in 2023 and supported more than 128,000 direct and indirect jobs in 2024.