The Canada Infrastructure Bank (CIB) has finalized a $660 million loan agreement with Irving Pulp & Paper to support the large-scale modernization of its pulp mill located in west Saint John, New Brunswick.
Known as Project NextGen, the modernization program includes the installation of a new recovery boiler, steam turbine and generator designed to produce up to 145 megawatts of renewable energy. This upgrade will replace outdated 1970s equipment with state-of-the-art technology, significantly improving mill efficiency and competitiveness.
A portion of the renewable energy – approximately 50 megawatts – will be used to power mill operations sustainably, while the excess will be supplied to the provincial grid under a power purchase agreement with NB Power.
According to a third-party economic impact assessment commissioned by Irving Pulp & Paper, the construction phase is expected to generate about $539 million in employment income and more than 2,200 person-years of employment. Once operational, the project is forecast to create over 600 new jobs across the forestry supply chain, with overall employment income in the forest products sector projected to increase by 38%.
The modernization will also deliver major environmental benefits. The facility will become energy self-sufficient, phase out the use of heavy fuel oil, and reduce greenhouse gas emissions per tonne of kraft pulp by 50%. This will position the Saint John mill among the world’s top performers in environmental standards within the pulp and paper sector.
In addition, the project is expected to boost softwood kraft pulp production by more than 70%, placing the mill among the top ten global producers. This expansion reinforces the strategic importance of the forestry sector as a driver of economic growth in New Brunswick.
Through its investment, the CIB is addressing financing gaps to mobilize private capital and accelerate the decarbonization of the provincial electricity system. The initiative aligns with the Bank’s Clean Power mandate, which supports projects in generation, transmission and storage that reduce emissions, strengthen competitiveness, and expand access to reliable, affordable, low-carbon energy across Canada.
