Mercer International Inc. subsidiary Mercer Peace River Pulp Ltd. (MPR) received C$20 million in government funding to upgrade its Alberta mill, the Canadian government announced on Wednesday.
The financing comprises a C$1 million non-repayable grant and a C$19 million repayable contribution, with repayments scheduled to commence in 2031. The investment targets productivity improvements, competitiveness enhancement, and modernization at the Peace River facility, which has operated in northern Alberta for over 35 years.
The upgrade plan includes expanding bio-energy production and carbon capture and storage capabilities. MPR already operates a carbon dioxide capture demonstration unit at the site. Mercer’s consolidated operations include annual production of 2.1 million tonnes of pulp, 1,023 million board feet of lumber, and other forest products.
Prairies Economic Development Canada (PrairiesCan), under Minister Eleanor Olszewski, stated the funding will help the mill modernize while safeguarding regional employment. Mercer CEO Juan Carlos Bueno said the investment represents a key step in the mill’s modernization, supporting productivity gains and reinforcing its role in northern Alberta’s forest products sector.
