The Ontario government is investing more than C$2.1 million in four forest-sector projects aimed at increasing lumber exports, modernizing sawmill operations and developing new commercial uses for forest biomass.

The funding combines a major lumber-drying expansion with three smaller biomass projects exploring bioenergy, carbon capture and forest-based materials.

The largest investment will go to Ben Hokum and Son, a sawmill in Golden Lake, Ontario.

Ben Hokum and Son to Triple Lumber-Drying Capacity

Ontario will provide more than C$1.9 million to Ben Hokum and Son through the province’s Forest Sector Investment and Innovation Program.

The company plans to install two biomass-assisted steam kilns, which are expected to triple its lumber-drying capacity and improve production efficiency.

According to the Ontario government, the investment could help the sawmill increase export sales by more than 30%.

The project is also expected to protect 115 direct jobs while supporting more than 100 indirect jobs.

Founded in 1956, Ben Hokum and Son produces more than 40 million board feet of white and red pine lumber annually.

The investment illustrates how biomass can serve two roles within the forest-products industry: as a feedstock for new products and as an energy source for existing manufacturing operations.

Ontario Funds Three Forest Biomass Projects

Alongside the sawmill modernization project, Ontario is providing funding for three projects through its Forest Biomass Program.

Together, the projects could eventually consume more than 350,000 tonnes of forest biomass annually if developed to their anticipated scale.

Ben Hokum and Son will receive another C$100,000 to plan a biomass-powered electricity and thermal-energy facility incorporating carbon capture and storage.

The proposed system is intended to generate energy from forest biomass while capturing carbon, with the project targeting net-negative emissions.

The funding is for planning, meaning the proposed facility should not yet be treated as a confirmed commercial-scale development.

TorchLight Studies Biomass Energy in Petawawa

TorchLight Bioresources will receive C$87,500 to conduct a feasibility study for a combined heat and power facility in Petawawa.

The proposed plant would use forest biomass to generate energy currently supplied by natural gas.

If ultimately developed, the project could create another outlet for forest residues while reducing dependence on fossil fuel for local heat and power generation.

Again, the current investment covers feasibility work rather than construction of the proposed facility.

Forest Biomass Could Also Become Coatings and Inks

A different approach is being pursued by Carboform, which will receive C$62,500.

Instead of using biomass primarily as an energy source, the company is developing technology to convert forest biomass residues into lower-carbon coatings and inks.

The funding will support technology optimization.

Carboform conducts its research and development at the SpinUp incubator at the University of Toronto’s Mississauga campus.

The project points toward a broader opportunity for the forestry sector: extracting additional value from residues by turning them into higher-value materials rather than relying solely on conventional wood and energy markets.

Ontario Looks Beyond Traditional Forest Products

The four investments form part of Ontario’s wider effort to diversify its forest economy.

The province’s Roadmap to Protecting Ontario’s Forest Sector is a 10-year strategy focused on improving competitiveness, developing new forest products and expanding international market access.

Ontario says its Forest Sector Investment and Innovation Program has approved almost C$90 million in funding and helped secure another C$420 million in external investment.

Its Forest Biomass Program has committed more than C$66 million across more than 60 projects.

The province estimates that Ontario’s forest sector generates close to C$21 billion in annual business revenue and supports approximately 155,000 jobs.

For Ontario, the latest C$2.1 million package therefore addresses two sides of the forest-products economy.

The C$1.9 million kiln investment targets an immediate manufacturing constraint by expanding lumber-drying capacity and potentially increasing exports.

The smaller biomass projects are more exploratory. They are examining whether forest residues can support new energy systems, carbon management technologies and higher-value materials such as coatings and inks.

If those projects advance beyond their current planning and development stages, biomass that might otherwise have limited economic value could become another feedstock for Ontario’s evolving forest-products industry.

Last Updated on 26/08/2026 by Jota Machinery