The Peace River Pulp Mill will be receiving a $20 million federal investment to help offset the costs of the new U.S. tariffs.
On Wednesday, August 26, Prairies Economic Development Canada announced the $20 million investment for the pulp mill. The investment is part of a total $7.5 billion investment by PrairiesCan where they are matching the new U.S. tariffs dollar for dollar on pulp and paper.
According to officials, the investment will support upgrades to the mill’s facilities and equipment to help improve operational efficiency and enable a shift toward a more profitable mix of hardwood and softwood pulp.
Some of the planned improvements include: upgrades to heavy black liquor piping, the rebuilding of pulp machine rolls, and improvements to a lime kiln and recovery boiler.
Officials add that the upgrades are expected to lower production costs, reduce emissions and improve output. The upgrades will also position the mill for potential future retrofits related to innovative energy production and carbon capture. Officials say that by doing these upgrades, it will create additional opportunities for Mercer Peace River to diversify its revenue streams and strengthen its long-term resilience.
The mill directly employs 360 people and supports approximately 3,000 jobs across Alberta’s forest sector supply chain.
