The Canada Infrastructure Bank (CIB) has reached financial close on a $660 million loan to Irving Pulp & Paper to support the large-scale modernization of the company’s pulp mill in west Saint John, New Brunswick.
Enabled by the CIB’s partnership, the modernization project consists of replacing 1970s era technology with current best-available solutions to improve productivity and maintain mill competitiveness within the sector. This includes a new recovery boiler, steam turbine and generator to produce up to 145 megawatts of renewable energy.
Excess energy generated at the mill will be exported to the provincial grid under a power purchase agreement with NB Power, with approximately 50 megawatts being used to sustainably energize mill operations.
Based on a third-party economic impact assessment provided by Irving Pulp & Paper, during the construction period, the project is expected to generate approximately $539 million in employment income and create approximately over 2,200 person-years of employment. Long-term, the project will create more than 600 new jobs across the forest supply chain with employment income expected to rise by 38% in the forest products sector.
The modernization will make the mill energy self-sufficient, eliminate the combustion of heavy fuel oil as an energy source and reduce emissions per tonne of Kraft pulp by 50%, supporting the province’s energy transition. The mill will become a global leader in environmental performance for this sector.
Once complete, this project will also position the mill among the top 10 global producers of softwood Kraft pulp – boosting production output by over 70% –while reinforcing the forestry sector as a key driver of economic growth.
