Ontario biocoal investment accelerates CHAR Technologies’ work to scale forest-based, low-carbon fuel alternatives.
THOROLD — Ontario is investing $2.25 million to help CHAR Technologies accelerate commercialization of biocoal, a low-carbon fuel made from forest biomass that could open new markets for Ontario’s forestry industry and reduce reliance on fossil carbon in heavy manufacturing.
The funding, delivered through the province’s Forest Biomass Program, will support improvements to biocoal durability for storage and transportation—key steps toward enabling large-scale use in steelmaking operations at ArcelorMittal Dofasco. Ontario says the investment will protect forestry jobs, build new supply chains, and help diversify revenue streams as the province responds to the economic impact of U.S. softwood lumber tariffs.
Associate Minister of Forestry and Forest Products Kevin Holland said the investment demonstrates Ontario’s focus on innovation within the forest sector. In the official release, he stated: “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.” Holland added that Ontario is positioning itself to become “a global leader in biocoal.”
New Markets and New Jobs
The project will support six existing jobs and create four new ones, while putting up to 180,000 tonnes of forest biomass to productive use each year. The province says the initiative will also open the door to new commercial pathways, connecting forestry operations with heavy industrial users and contributing to a growing provincial biofuel network.
CHAR Technologies CEO Andrew White welcomed the funding and emphasized biocarbon’s potential to decarbonize steel production. “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,” White said in the release.
Supporting a Growing Bioeconomy
The announcement coincides with the release of two progress reports outlining Ontario’s growing forest bioeconomy:
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Forest Biomass Action Plan Interim Report – highlights success to date in maximizing wood value, developing new markets, and creating jobs.
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Forest Biomass Action Plan Research Summary Report – provides insights into emerging biomass innovations that offer economic and environmental benefits.
Since its launch in 2023, the Forest Biomass Program has committed over $50 million to more than 55 projects across Ontario. The program is a key pillar of the province’s broader plan to support the forestry sector amid global trade pressures and rising cross-border tariffs.
Strengthening Forestry Supply Chains
Ontario also announced a new working group to advance the Advanced Wood Construction Action Plan, which promotes the use of wood-based materials in construction and aims to build more resilient, diversified supply chains.
In addition, the province highlighted previous investments in CHAR Technologies, including $6.4 million through the Forest Sector Investment and Innovation Program to expand the company’s Thorold facility, which produces renewable natural gas and biocarbon through pyrolysis.
Industry groups welcomed the latest investment, noting its potential to support jobs, improve competitiveness, and scale new technologies across the province. Representatives from the Ontario Forest Industries Association, ArcelorMittal Dofasco, the BMI Group, and other partners expressed support for the province’s commitment to building a more resilient forest economy.
Ontario’s forest sector generated $21.6 billion in revenue in 2023 and supported over 128,000 jobs in 2024, underscoring its continued importance to regional economies—particularly in Northern and rural communities.
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