CHAR Technologies’ new partnership with BMI Group marks a strategic step in scaling biochar and renewable natural gas production by repurposing idle industrial assets in Northern Ontario. The first focus of this collaboration is the former Domtar pulp and paper mill in Espanola, now rebranded as Bioveld North. This follows the model established at CHAR’s Thorold facility, which is expected to begin commercial production later this year and serves as a prototype for future developments.

The Espanola site offers significant advantages, including existing wood processing infrastructure and access to a substantial regional biomass supply. While detailed engineering studies will determine the final production scale later this year, early indicators suggest the facility could surpass the Thorold plant’s capacity of 75,000 tonnes of biomass annually. The region’s forestry sector, impacted by the closure of the Domtar mill, stands to benefit from renewed demand for low-grade wood residuals such as treetops, limbs, and sawdust. However, CHAR representatives caution that consumption levels may not match the historic 500,000 tonnes previously processed by Domtar.

Using its proprietary high-temperature pyrolysis technology, CHAR will convert woody biomass into renewable natural gas and biocarbon pellets. The biocarbon product, already validated by ArcelorMittal Dofasco for use in both blast and electric arc furnaces, plays a key role in steel industry decarbonization. With ArcelorMittal as a major shareholder and offtake partner, CHAR is well positioned to meet the growing demand for low-carbon alternatives to metallurgical coal.

While job creation at the facility will be modest due to high levels of automation—Thorold’s two-kiln operation employs just 12 workers—the broader economic impact is expected upstream in the biomass supply chain. The partnership also supports BMI Group’s strategy to redevelop former industrial sites across Ontario, Quebec, and Michigan into productive clean energy assets.

With robust demand from utilities and heavy industry, CHAR’s model reflects a pragmatic approach to industrial decarbonization and economic renewal. Engineering and feedstock sourcing decisions will be finalized in the coming months, determining whether Espanola becomes a key node in Ontario’s emerging low-carbon energy economy.


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