Mercer International's subsidiary, Mercer Peace River Pulp, will receive C$20 million (approximately US$14 million) in financial support. The Government of Canada provides this funding through Prairies Economic Development Canada under the Regional Tariff Response Initiative.
The financial package includes a C$1 million non-repayable contribution. It also features a C$19 million repayable loan. Loan repayments are scheduled to begin in 2031. This capital supports a broader transformation plan at the northern Alberta mill. The funds will improve productivity, modernize the facility, and prepare for expanded bio-energy production and carbon capture and storage capabilities.