Ontario Invests $2.25 Million to Advance Biocoal for Low-Carbon Steelmaking

UTES Design and Build Team • January 9, 2026

A Step Toward Greener Construction and Industrial Innovation

Ontario is taking a major step toward reducing carbon emissions in heavy industry with a $2.25 million investment to support the commercialization of biocoal, a renewable fuel made from forest by-products. This initiative, delivered through the Forest Biomass Program, aims to expand markets for underused wood fibre while helping industries transition to cleaner energy sources.


What’s Happening?


  • Funding goes to CHAR Technologies Ltd., a Toronto-based environmental services company.
  • CHAR is developing biocarbon pellets for use in steelmaking, working with ArcelorMittal Dofasco in Hamilton to test biocoal as a partial replacement for fossil carbon.
  • The investment will improve durability of biocoal during storage and transport, a key requirement for industrial-scale use.
  • The project will support six existing jobs, create four new positions, and enable the use of up to 180,000 tonnes of forest biomass annually.


CHAR operates a renewable energy facility in Thorold, Ontario, using high-temperature pyrolysis to convert biomass into biocarbon and other energy products. With this funding, the company is preparing for commercial-scale production.


Why It Matters for Construction


  • Lower-carbon steel means greener building materials for residential and commercial projects.
  • Expanded biomass markets help stabilize forestry operations, ensuring sustainable supply chains for wood-based products.
  • Innovations like biocoal align with Ontario’s climate goals and the growing demand for sustainable construction practices.


How Does This Affect You?


Homeowners


  • Future custom homes and additions could incorporate low-carbon steel components, reducing environmental impact.
  • Sustainable materials may become more accessible as green technologies scale up.


Builders & Developers


  • Expect new opportunities to meet green building standards and attract eco-conscious buyers.
  • Partnerships with suppliers using biocoal-based steel can strengthen sustainability credentials.


Commercial Property Owners


  • Mixed-use and commercial projects can benefit from lower-carbon structural materials, supporting ESG commitments and long-term value.


UTES Design & Build: Building for a Greener Future


We integrate sustainability into every stage of design and construction, from material selection to energy performance. As Ontario invests in technologies like biocoal, UTES is ready to help clients leverage these innovations for smarter, greener builds.


Contact us today to learn how sustainable materials can enhance your next project.


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