On September 26, 2025, the Canada Infrastructure Bank (CIB) 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. Known as "Project NextGen," the $1.5 billion modernization 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.
The project involves replacing 1970s-era technology with current best-available solutions, including a new recovery boiler, steam turbine, and generator to produce up to 145 megawatts of renewable energy. This "Energy Island" will make the mill energy self-sufficient, with approximately 50 megawatts used to sustainably energize mill operations and the surplus exported to the provincial grid under a long-term Power Purchase Agreement (PPA) with NB Power. The modernization will eliminate the combustion of heavy fuel oil as an energy source and reduce emissions per tonne of Kraft pulp by 50 percent, supporting the province's energy transition. Once complete, the project will position the mill among the top 10 global producers of softwood Kraft pulp, boosting production output by over 70 percent.
The financing is a flagship project under 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.
Osler, Hoskin & Harcourt LLP advised the Canada Infrastructure Bank on the financing, with a team led by Jacob Sadikman and Chris Bennett that included Marta Rochkin, Oleksandr Tsimerman, and Liz Mpermperacis.