The federal and provincial governments have announced a combined investment of more than $11.3 million that will enable a Thorold business to expand its cleantech energy-production facility.

“This new facility will produce clean alternative fuels and increase sustainability in the forest sector through new and emerging uses of renewable forest biomass,” said Natural Resources and Forestry Minister Graydon Smith. “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.”

CHAR Technologies produces renewable natural gas (RNG) and biocarbon. Its expansion plan will create the largest facility of its kind in Canada, and the only RNG facility in the country to exclusively use woody biomass.

The expansion is expected to create as many as 20 construction jobs.

CHAR’s global first-in-kind, high temperature pyrolysis process converts woody biomass to simultaneously produce two highly profitable green outputs ready for industrial application without generating greenhouse gases. When commercially operational, CHAR’s Thorold facility will convert 75,000 tonnes of woody biomass to simultaneously produce 500,000 gigajoules of RNG and 10,000 tonnes of biocarbon per year.

Joint funding is being made available through the Federal Economic Development Agency for Southern Ontario and the Investments in Forest Industry Transformation program, as well as Ontario’s own Forest Sector Investment and Innovation Program.

The Government of Ontario is providing $6.4 million for the project, while Natural Resources Canada is providing $4.9 million.

The funding will be disbursed in instalments during the course of construction from early 2023 to 2025.

“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,” said Federal Natural Resources Minister Jonathan Wilkinson.

CHAR Technologies has developed new technology to produce clean energy from woody biomass, including unused tree parts and mill by-products like bark, shavings and sawdust. Each year, the new facility will produce 10,000 tonnes of biocarbon as a coal fuel alternative for Ontario’s heavy industries, and enough renewable natural gas to heat over 5,500 homes.

“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 towards a green energy transition,” said Andrew White, CEO of CHAR Technologies. “Today represents climate change action in action and is a major win for Canada’s growing bioeconomy as we move towards a Net Zero future in collaboration with Ontario’s resilient forestry sector.”

By providing alternative fuels, the project will directly reduce greenhouse gas emissions by up to 30,000 tonnes each year. Diverting mill by-products from landfill will further avoid and reduce indirect emissions by as much as 30,000 tonnes annually, with a combined effect equivalent to taking 18,000 cars off the road.