Bioveld North Inc., a Canadian-owned subsidiary of BMI Group focused on restarting and transforming idled industrial facilities, is advancing engineering work to potentially restart the Espanola pulp mill in northeastern Ontario with $5.1 million in provincial funding. A restart could restore demand for up to 1.8 million m3 of sustainably sourced wood each year and create 400 direct jobs and 2,000 indirect jobs, according to the Government of Ontario.

The mill was previously operated by Domtar Corporation, which announced in September 2023, that it would indefinitely idle the Espanola pulp and paper operations after years of ongoing operating losses and high costs associated with maintaining and operating the facility. The pulp mill was shut down in early October 2023, while the paper machines were shut down in early 2024.

The engineering work will develop a plan for restarting the idled Espanola Pulp and Paper Mill and identify efficiency and reliability upgrades intended to improve the facility's competitiveness.

The potential restart could reconnect local sawmills, contractors, truckers and other forestry businesses to the mill and create opportunities for harvesting and wood transportation services.

Bioveld is also evaluating opportunities to diversify mill operations beyond pulp and paper, including renewable fuels, biofuels, biochar and other bioproducts, with the aim of using more parts of the tree in the facility's future operations.

Bioveld North acquired the former Domtar Espanola Mill in 2025 with the goal of restarting and modernizing the facility as an anchor for a regional bioeconomy. Domtar completed the sale of the Espanola facility to Bioveld North on October 17, 2025.

The potential restart would help anchor long-term growth in the regional forest sector and could restore demand for up to 1.8 million m3 of sustainably sourced wood annually. The provincial funding is intended to advance the early-stage work needed to assess the project and help create conditions for potential private investment in modernization.

The Forest Biomass Program can invest up to $20 million each year in projects that increase biomass use and develop new uses for wood. Since its launch in 2023, the program has committed more than $70 million to 68 projects, with close to $260 million in additional external funding and more than 110 new jobs associated with those projects.