Toronto-based clean technology firm CHAR Technologies and its joint venture partner, Lake Nipigon Forest Management Inc. (LNFMI), have successfully secured a provincial forest resource processing facility licence for a planned renewable energy operation. The facility, a dedicated “biohub,” is slated for development near Hurkett, situated east of Thunder Bay in northwestern Ontario.

This partnership is key to the project’s sustainability, with LNFMI—the Sustainable Forest License (SFL) holder for the Lake Nipigon Forest—ensuring a secure, long-term supply of woody feedstockFeedstock refers to the raw organic material used to produce biochar. This can include a wide range of materials, such as wood chips, agricultural residues, and animal manure. More required for the facility. The development is further supported by the involvement of four area First Nations: Animbiigoo Zaagi’igan Anishinaabek, Bingwi Neyaashi Anishinaabek, Biinjitiwaabik Zaaging Anishinaabek, and Red Rock Indian Band. Initial civil works have already been completed at the greenfield site in preparation for the main build.

The proposed operation will convert residual wood waste into a valuable dual product stream. The first is a biocarbon product, specifically a bio-coal or activated biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More, intended for industrial applications such as steel manufacturing and metal and mine processing. Once the biocarbon production is established, the next phase of the facility will move into producing renewable natural gas (RNG).

Securing the provincial licence is a necessary step, clearing the path for the co-developers to pursue construction financing through a combination of project-level equity, non-repayable grants, and project-level non-recourse debt. The developers have scheduled the construction phase for the facility to commence sometime in 2026.

The facility is expected to be a significant economic driver for the region. CHAR forecasts that the operation will generate annual revenues exceeding $70 million. This revenue is anticipated from the sale of both renewable fuels and the biocarbon product, supported by long-term offtake agreements already in place.

CHAR Tech CEO Andrew White noted that securing access to a long-term wood waste supply positions the partnership to advance construction, deliver economic benefits, and support Indigenous-led development. Associate Minister of Forestry and Forest Products, Kevin Holland, added that the project puts 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 to work, building a stronger forest sector. The initiative is also cited for its contribution to helping Ontario meet its provincial advanced biofuels and decarbonization goals. LNFMI CEO Scot Rubin stated that the licence opens the door to new economic opportunities and sustainable forestry growth that will serve communities for decades.

SOURCE: Proposed wood waste-to-energy facility is licensed by province