The Ontario government has announced a $5.5 million investment to support Greenwater Technology in producing renewable diesel and sustainable aviation fuel using mill by-products and underutilized wood resources. The initiative is designed to create new market opportunities for Ontario’s forest sector while helping transportation and aviation industries transition toward cleaner fuel alternatives. The investment also supports the province’s broader strategy to strengthen local industries against economic challenges and international trade pressures.
The funding includes $5 million from the Forest Biomass Program’s Innovative Bioproduct Manufacturing stream and an additional $500,000 from the Northern Ontario Heritage Fund Corporation. The project will help Greenwater establish a cleantech pilot plant in Thunder Bay that converts forest biomass into renewable fuels. The initiative is expected to create new employment opportunities and open additional revenue streams for forestry businesses supplying biomass materials.
Greenwater’s larger $15.5 million project involves transforming an existing building at Thunder Bay Pulp and Paper into a commercial-scale testing facility. The facility will evaluate the economic viability of the technology and identify the most effective wood feedstocks for producing high-quality biofuels. The company also plans to integrate future biofuel production plants directly at anchor mills, creating efficient on-site uses for forest biomass and improving forestry supply chains.
Ontario officials stated that investing in innovative biofuel technologies aligns with the province’s long-term forestry strategy aimed at protecting workers, expanding markets for forest products, and encouraging industry growth. The province’s forest sector remains a major contributor to the economy, generating billions in revenue and supporting thousands of jobs. Through investments in biomass innovation and sustainable manufacturing, Ontario aims to strengthen its position as a leader in renewable forest-based products and clean energy development.
