CHAR Technologies Ltd. (CHAR Tech) has secured a $2.25 million grant from the Government of Ontario to accelerate the commercial production of low-carbon biocarbon pellets. Announced in December 2025, this non-repayable funding is provided through the provincial Forest BiomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More Program and is set to cover 50 percent of eligible project costs at the company’s Thorold Renewable Energy Facility. The investment is designed to bridge the gap between developmental technologies and full-scale market readiness, specifically targeting the heavy industrial sector.

A major challenge impeding the widespread adoption of bio-based reductants in heavy industry has been meeting the rigorous physical standards required by end-users. For biocarbon to serve as a viable “drop-in” replacement for fossil coal in steelmaking, it must possess specific density, durability, and handling characteristics. Historically, raw biomass or lower-quality chars have struggled to withstand the mechanical stresses of industrial processing and long-distance transport, limiting their utility to local, lower-value applications and preventing access to international markets.

To overcome these technical barriers, the allocated funding will support the optimization of CHAR Tech’s commercial pellet line. The company utilizes High Temperature PyrolysisPyrolysis is a thermochemical process that converts waste biomass into bio-char, bio-oil, and pyro-gas. It offers significant advantages in waste valorization, turning low-value materials into economically valuable resources. Its versatility allows for tailored products based on operational conditions, presenting itself as a cost-effective and efficient More (HTP) technology to process unmerchantable wood and organic waste into stable biocarbon. The current project focuses on refining the pelletization process to ensure the final product is sufficiently dense and durable for use in blast furnaces and for export to Europe. This technical upgrade is proceeding in tandem with the installation of a second HTP kiln, with the enhanced production line expected to be operational by 2026.

The outcomes of this initiative are poised to impact both the local economy and the global carbon transition. By producing a high-grade renewable reductant, the project will assist Ontario steelmakers in decarbonizing their operations while simultaneously opening trade routes to European markets where demand for low-carbon fuels is intensifying. Furthermore, the utilization of forest biomass supports the regional forestry sector by creating a value-added market for wood waste, thereby sustaining jobs and maximizing the economic potential of forest resources.