MP Badawey Announces Investment of $4.9 Million for a First-of-its-Kind Woody-Biomass-to-Renewable-Energy Facility in Canada

THOROLD, ON, Dec. 13, 2022 /CNW/ - Canadians are moving toward more sustainable options across the supply chain. As industrial facilities move away from fossil fuel sources, Canada's forest resources have the potential to drive low-carbon economic growth while creating sustainable jobs. The production of renewable bioproducts from low-value woody biomass provides the opportunity to minimize waste in the forest sector while reducing emissions.

Today, Vance Badawey, Parliamentary Secretary to the Minister of Indigenous Services and Member of Parliament for Niagara Centre, on behalf of the Honourable Jonathan Wilkinson, Minister of Natural Resources, announced a federal investment of $4.9 million for CHAR Technologies Thorold Inc. (CHAR) for a woody-biomass-to-renewable-energy facility in Thorold, Ontario. This amount is in addition to $1.5 million provided by FederalDev Ontario, bringing the total current federal investment for this project to $6.4 million.

CHAR's Thorold facility will demonstrate a first-of-its-kind solution for converting underutilized woody biomass into valuable bioproducts including biocarbon and renewable natural gas (RNG), which may be used to produce hydrogen in the near future. This will help to displace fossil fuel use for heavy emitters such as steel manufacturers, mining operations and pulp mills to support the decarbonization of Canadian industry.

Support for this project is delivered through Natural Resources Canada's Investments in Forest Industry Transformation (IFIT) program, alongside FedDev Ontario's Jobs and Growth Fund and the Ontario Ministry of Natural Resources and Forestry. In addition to the investment from CHAR, the total investment in this project is $27.5 million.

When commercially operational, the facility will divert 75,000 tonnes of woody biomass from being landfilled or burned to simultaneously produce 500,000 gigajoules of RNG and 10,000 tonnes of biocarbon per year.

By providing alternate fuels and diverting mill byproducts from the landfill or burn sites, this project will result in a reduction in greenhouse gas (GHG) emissions of 60,000 tonnes per year, the equivalent of over 18,000 passenger vehicles off the road.

This investment demonstrates Canada's ongoing commitment to innovative projects that support a clean, sustainable and competitive forest sector while reducing GHG emissions and fighting climate change.

Quotes

"Congratulations to CHAR Technologies on the development of a novel facility that will help to reduce emissions while creating jobs for Canadians. This facility will help displace fossil fuel combustion while diverting wood waste from being burned or landfilled. This will reduce carbon and methane emissions while contributing to Canada's ambitious climate goals. The Government of Canada is pleased to support this important work."

The Honourable Jonathan Wilkinson
Minister of Natural Resources

"Today's $4.9-million investment is another example of how the Government of Canada is supporting sustainable jobs, innovative technologies and green businesses. This support will help CHAR Technologies Thorold Inc. use wood waste to produce renewable natural gas, reduce greenhouse gas emissions and support the decarbonization of Canadian industry. This investment also exhibits the government's commitment in strengthening the economy in Niagara Centre and its confidence in the Niagara Ports Multimodal Trade Corridor and all of its partners to help achieve expected economic outcomes." 

Vance Badawey
Parliamentary Secretary to the Minister of Indigenous Services and Member of Parliament for Niagara Centre

"The Government of Canada is committed to supporting companies that are leading the charge on the development of innovative, clean solutions to help Canadians build a greener future for their families. Through investments like the one today for CHAR Technologies Thorold Inc., we are creating skilled jobs and helping to grow the economy toward a cleaner, greener Canadian economy."

The Honourable Filomena Tassi
Minister of the Federal Economic Development Agency for Southern Ontario

"Thanks to the confidence and support from the governments of Canada and Ontario, CHAR is proud to demonstrate what can be accomplished when industry and governments work together toward a green energy transition. Today represents climate change action in action and is a major win for Canada's growing bioeconomy as we move toward a net-zero future in collaboration with Ontario's resilient forestry sector. This facility will position CHAR as a leader in environmentally sustainable, renewable natural gas and biocoal production and will help create a significant competitive advantage for long-term growth. We will continue to divert increasing volumes of wood wastes from landfill and increase the supply of clean, direct, drop-in replacements for fossil fuels."

Andrew White
Chief Executive Officer, CHAR Technologies Ltd.

"This new facility will produce clean alternative fuels and increase sustainability in the forest sector through new and emerging uses of renewable forest biomass. Our investment in CHAR Technologies is an investment in Ontario, which will boost productivity, create jobs and support a thriving forest economy that communities throughout the province depend on."

The Honourable Graydon Smith
Ontario Minister of Natural Resources and Forestry

"Made-in-Ontario solutions like CHAR Technologies' new technology help to keep Ontario at the forefront of global innovation. Our government is proud to support CHAR Technologies as they bring their innovative technology to market and create good-paying jobs for families in Thorold." 

The Honourable Vic Fedeli
Ontario Minister of Economic Development, Job Creation and Trade

"Our government is proud to support the important work that CHAR Technologies is doing to advance Ontario-made solutions that will help us to meet our climate goals and grow Ontario's green economy. As the largest facility of its kind in Canada, this investment will leverage Ontario's expertise in clean technologies, further reduce emissions by diverting mill by-products from landfills and keep our private sector at the forefront of this renewable energy innovation."

The Honourable David Piccini
Ontario Minister of the Environment, Conservation and Parks

"By supporting the production of renewable natural gas and biocarbon, Ontario will continue to be a leader in clean energy technologies. This investment will create jobs, grow the local economy and create a new source of flexible and adaptable renewable natural gas."

The Honourable Todd Smith
Ontario's Minister of Energy

"For over a decade, CHAR Technologies has been a North American leader in cleantech development and environmental services. Today's announcement regarding a new renewable forest biomass production facility in Thorold is good news for workers in Niagara, as well as the clean energy and forestry sectors across Ontario."

Sam Oosterhoff
Member of Provincial Parliament for Niagara West

Quick Facts

• Natural Resources Canada's IFIT program encourages the Canadian forest sector to adopt innovative technologies and processes to establish new product streams and emerging markets. By investing in innovative forest sector technologies, the forest sector is providing greener solutions that help tackle climate change and transition to a low-carbon economy while increasing its competitiveness on a national and global scale.
• The Federal Economic Development Agency for Southern Ontario's Jobs and Growth Fund provides funding to businesses and organizations to help create jobs and position local economies for long-term growth. The fund, delivered by Canada's regional development agencies, provides $700 million nationally over three years, which includes up to $70 million dedicated to businesses created after January 2020 that meet eligibility criteria.
• Provincial support comes from the Ontario Forest Sector Investment and Innovation program that provides funding for strategic investments in the forest sector that improve productivity and innovation, enhance competitiveness, support new market access, provide benefits to Ontario's broader forest sector and strengthen regional economies.

Related Information

• 2030 Emissions Reduction Plan: Clean Air, Strong Economy
• CHAR Technologies Thorold Inc.
• Investments in Forest Industry Transformation
• FedDev Ontario Invests $1,500,000 in CHAR Technologies
• Ontario Forest Sector Investment and Innovation

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SOURCE Natural Resources Canada

Natural Resources Canada, Media Relations, 343-292-6100, [email protected]; Keean Nembhard, Press Secretary, Office of the Minister of Natural Resources, 613-323-7892, [email protected]