ARTICLE | February 13, 2026
Nearly two years after Domtar idled the Espanola pulp and paper mill and eliminated approximately 450 jobs, the site is entering a new phase. In October 2025, BMI Group completed the acquisition of the former mill and relaunched it under a new name, Bioveld North Inc., bringing a long dormant industrial asset back into productive use.
For the Espanola community and the broader Northern Ontario business environment, this industrial redevelopment signals renewed economic momentum and long-term opportunity.
From Closure to Opportunity: Strategic Industrial Redevelopment in Northern Ontario
According to Corey Houle, “the Espanola mill closure in 2023 was a major economic setback for the region. BMI’s acquisition of the site represents a reversal of that trend, positioning the property as a future hub for energy and bioeconomy innovation”.
BMI has stated that its redevelopment strategy focuses on leveraging the site’s existing infrastructure to attract new investment, support job creation, and enable sustainable economic growth across Northern Ontario. Rather than starting from scratch, the company is building on assets that already exist, a model that has proven effective at other former industrial sites across Canada.
A Site With Strategic Renewable Energy Value
The Espanola property spans more than 8,800 acres and includes significant hydroelectric infrastructure. As energy security and domestic generation continue to grow in importance across Canada, the site’s ability to produce renewable power gives it strategic relevance beyond the local economy.
The mill’s hydroelectric dam remains operational and feeds electricity into Ontario’s grid. Thirty one employees currently manage and maintain the facility, and BMI has confirmed these positions will be retained. Maintaining this skilled workforce ensures continuity of operations and preserves local expertise tied to renewable energy generation.
The project has also cleared key regulatory milestones, having received approvals from both the Ontario Energy Board (OEB) and the Independent Electricity System Operator (IESO).
Community and Indigenous Partnership Economic Development
BMI has emphasized its commitment to working collaboratively with local and Indigenous communities, including Sagamok First Nation and Whitefish River First Nation. The goal is to ensure Northern Ontario redevelopment plans align with shared priorities and generate long term regional benefits.
For municipalities, service providers, and regional businesses, these partnerships may lead to opportunities in workforce development, infrastructure projects, and supply chain participation as the site evolves.
Biocarbon Facility Advances With Major Capital Commitment
One of the most significant developments tied to Bioveld North is a proposed large scale biocarbon facility, being advanced in partnership with CHAR Technologies Ltd.
In January 2026, CHAR Technologies announced that BMI committed CAD 10 million to support the engineering and design study for the Espanola biocarbon project. This funding moves the project from concept toward execution and reflects growing confidence in bioeconomy applications tied to forestry byproducts.
Biocarbon Production and Green Economy Impact
If developed, the facility is expected to produce up to 50,000 tonnes of biocarbon annually, roughly five times the output of previous CHAR facilities. The plant would use locally sourced wood waste and forestry residuals to produce low carbon biocarbon and synthetic gas. In later phases, that gas could be used on site or upgraded to renewable natural gas.
BMI Group’s Track Record in Industrial Asset Repositioning
The Espanola mill redevelopment follows a pattern seen across BMI’s national portfolio. The company has successfully repositioned former industrial properties into productive assets, including:
- Industrial and multimodal logistics hubs such as Bioveld Niagara and Norderra
- Transportation linked development sites such as Abitibi Connex and Willmarck Mackenzie
- Urban redevelopment and mixed use projects such as the Fort Frances waterfront site
- Regional economic catalysts such as the Prince Albert mill site in Saskatchewan
What This Means for Northern Ontario Businesses
The transformation of the Espanola mill has several implications for businesses operating across Northern Ontario:
- Economic diversification as the site shifts from traditional pulp and paper toward energy and bioeconomy uses
- Supply chain opportunities related to forestry residuals, transportation, engineering, and industrial services
- Investment signals reflected by multi million dollar commitments at the planning stage
- Employment potential as development progresses toward construction, operations, and long term maintenance
Northern Ontario Economic Development: Looking Ahead
With the biocarbon engineering and design study expected to conclude in early 2026, stakeholders should soon gain clearer insight into project timelines and scope. If development proceeds as planned, Bioveld North could become one of Northern Ontario’s most impactful industrial redevelopment projects, offering a model for how legacy mill sites can be repurposed for the emerging green economy.
For business owners, investors, and advisors in Espanola, Sault Ste. Marie, Sudbury, North Bay, and across Northern Ontario, these developments signal concrete opportunities. Understanding how regional growth patterns, labor demand, and capital flows will shift enables your business to position strategically rather than reactively.
Assess Your Business Readiness for Northern Ontario Growth
If you want to understand how upcoming investment could affect your business, and whether your financial, operational, and leadership structures are ready to scale, contact one of our FCR advisors.
Our team works with businesses in Sudbury, North Bay, Espanola, Sault Ste. Marie and across Northern Ontario to assess readiness, strengthen foundations, and support confident decision-making for growth.
Being prepared today is what positions your business to succeed tomorrow.
Let’s Talk!
Call us at 1 855 363 3526 or fill out the form below and we’ll contact you to discuss your specific situation.