Atikokan Renewable Fuels is receiving the wood needed to begin producing wood pellets.
The province is providing the company with the rights to access 179-thousand cubic metres per year of poplar and birch fibre from forests near the Atikokan plant.
Company spokesperson Ed Fukushima expects production to begin later this year.
"We're excited about it," says Fukushima. "Demand has ramped up in the last two months and there's exciting opportunities for the plant in Atikokan."
The company is also receiving $1.25 million from the Northern Ontario Heritage Fund to cover costs incurred when the plant didn't have a wood supply.