ESPANOLA — BMI Group has completed its previously announced purchase of the former Espanola pulp and paper mill.
First announced in April, the sale encompasses 8,823 acres of land, including the main mill site, surrounding lands, several dams, and a golf course.
Neither BMI nor the seller, Domtar, have disclosed the value of the transaction.
Douglas Gervais, mayor of the town of 5,100 people west of Sudbury, welcomed the news.
"The redevelopment of the mill site marks a new chapter for Espanola," Gervais said in a BMI news release. "We look forward to working together to attract investment, create jobs, and build a strong future for our town."
BMI said the site will operate as a subsidiary, Bioveld North Inc. Its goal is to transform the site into a hub producing biofuels from wood fibre, with CHAR Technologies showing early interest in the site.
The development company said it’s received approvals from both the Ontario Energy Board (OEB) and the Independent Electricity System Operator (IESO).
Current workers operating the hydro dam through its energy subsidiary, Penstock Power LP, will remain employed with the project.
"The team's continued presence, professionalism, and specialized expertise will help ensure the facility's meaningful contribution to Ontario's renewable energy supply," Paul Veldman, CEO of BMI, said in the release. "We are proud to welcome them."
The Espanola site will carry on the vision BMI first employed at its Niagara Energy Innovation and Enterprise Park, “dedicated to advancing energy and bioeconomy innovation.”
BMI said it’s also involved in discussions with Sagamok First Nation and Whitefish River First Nation and seeking to engage other Indigenous communities “as part of its ongoing planning for the future of the site.”
Domtar announced in 2023 it would permanently close the mill, affecting 450 employees.
The company cited “years of ongoing operating losses and high costs associated with maintaining and operating the facility” for the decision.
Headquartered in Tillsonburg, BMI Group redevelops brownfield sites to ready them for new uses. Among the properties in its portfolio are former mills in Fort Frances, Red Rock, and Iroquois Falls.