Feds offer $20M to support Mercer Peace River Pulp

The federal government has committed $20 million to Mercer Peace River Pulp under the Regional Tariff Response Initiative (RTRI).

Eleanor Olszewski, federal minister responsible for Prairies Economic Development Canada (PrairiesCan) PrairiesCan, announced the support today during a visit to the mill in Peace River, Alta.

“Canada did not choose trade conflict with the U.S., but we will stand up for workers, businesses and communities under pressure,” she said. “For more than 35 years, Mercer Peace River has been an anchor of Northern Alberta’s economy. This investment will help the mill modernize, compete and protect jobs.”

The financial support includes a $1-million non-repayable contribution and a $19-million repayable contribution. Repayment is scheduled to begin in 2031, subject to the terms of the contribution agreement.

The funding provides capital to support Mercer International‘s transformation plan to modernize and improve the productivity of the mill, which includes preparing the facility for the expansion of bio-energy production and carbon capture and storage. The funding builds on work already underway at the mill, including a carbon dioxide capture demonstration unit.

“This investment is an important step in continued modernization,” says Juan Carlos Bueno, president and CEO of Mercer. “It supports improvements to the mill’s competitiveness and reflects the important role it plays within northern Alberta’s forest products economy. I also recognize the work of our Peace River team in advancing these improvements.”