Wednesday, October 22, 2025
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.
“As an impact investor, the CIB provides loans to accelerate projects which deliver long-term benefits to Canadians and the economy. Our $660 million loan for Saint John mill’s modernization comes at a critical time for the region—supporting one of New Brunswick’s largest employers and exporters, creating hundreds of long-term jobs across the forestry supply chain and expanding renewable energy generation within the province,” said Ehren Cory, CEO, Canada Infrastructure Bank.
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.
“Project NextGen is an important step forward for our people, our customers and our community. The CIB’s loan helps us invest in innovation and sustainability, while staying true to what matters most—creating good jobs, delivering value to our customers and strengthening the places we call home,” said Jim Irving, Co-CEO, Irving Pulp & Paper.
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 CIB’s investment toward the Saint John Mill Modernization project will create good jobs while supporting the energy transition in New Brunswick. This investment also expands production leading to direct economic benefits and boosting the strategically important forestry sector. Your new federal government is focused on building and growing the Canadian economy to be the strongest in the G7,” said Wayne Long, MP Saint John-Kennebecasis.
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.
The CIB’s loan bridges lending gaps, enabling significant private capital investment and supporting decarbonization of the provincial electricity grid. It is aligned with the CIB’s Clean Power mandate which supports generation, transmission and storage assets that reduce emissions, foster economic growth and enable access to lower-emitting, more affordable energy for Canadians.
“Project NextGen will increase the capacity of the Irving Pulp & Paper mill while also increasing the green energy it generates, making it one of the top producing kraft pulp mills in the world and a global leader in environmental performance. This $1.5 billion project is the largest investment in the Canadian forest products industry since 1993 and will help secure the mill’s future as the heart of the province’s forest value chain, at a time when many North American centres are competing to attract this kind of private investment,” said Ron Marcolin, VP, Canadian Manufacturers and Exporters.
Featured image: Saint John pulp and paper mill in front of a body of water with a blue skyline in the background. (CNW Group/Canada Infrastructure Bank)
