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Photo Courtesy Mercer Peace River (Image Credit: Photo Courtesy Mercer Peace River)

By Tanner Smith

Federal Government

$20 million to support the “modernization of Mercer Peace River Pulp Ltd.”

Aug 26, 2026 | 4:41 PM

The federal government is helping a Peace Region sector combat U.S tariffs.

Following an American announcement to impose additional tariffs that affect Canada’s forestry sector, the federal government put counter-tariffs in effect and is providing $7.5 billion in support funding for affected businesses.

As part of the support funding, the federal government is putting $20 million towards modernizing the Peace River Pulp Mill.

Funds will now be used to lower production costs, reduce emissions, and improve output while strengthening “the mill’s competitiveness in a changing global market.”

“The investment will support upgrades to the mill’s facilities and equipment to improve operational efficiency and enable a shift toward a more profitable mix of hardwood and softwood pulp. Planned improvements include upgrades to heavy black liquor piping, the rebuilding of pulp machine rolls, and improvements to a lime kiln and recovery boiler.”

While a trade war with the U.S. marches on, government officials say Canada continues to invest in local economies, with Premier Danielle Smith in Grande Prairie on Wednesday (Aug. 26) to officially open a new Skilled Trades Lab at Northwestern Polytechnic.

by Tanner Smith