Canada’s 2019 Investment in Domtar Paper to Replace Single-Use Plastics

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Canada’s 2019 Investment in Domtar Paper to Replace Single-Use Plastics

One month after Canada announced its decision to ban plastics, the government of Canada announced that it is committing $28.8 million to Domtar Inc., a fibre innovator that is working on a new material to replace single-use plastic.


The company will use the funds to work on its Stealth Fiber Technology. The project aims to produce strong, durable paper that could replace single-use plastics like food wrap and medical packaging.


The funding will go towards a $57.5-million project that aims to provide new equipment and apply new processes at a pulp and specialty paper mill in Espanola, Ontario.


The announcement will also allow for more research and development. The company noted that it’ll look to come up with a diversity and gender equity plan to work with women and Indigenous communities.


The article’s reference to a possible 2021 ban reflects the policy discussion of 2019, rather than a current statement of Canadian law or proof that this technology had reached the market.


Less than 10 percent of the plastic used in the country gets recycled, and Canada sees more than three million tonnes of plastic waste thrown away annually. Up to 15 billion plastic bags are used every year, and 57 million straws are used every single day in Canada.


If Domtar’s paper alternative is proven to be effective, then it could act as the “new single-use plastic” by 2021.

What the government funded

The July 2019 federal announcement described support for equipment, processes and commercialization at Domtar’s Espanola mill. It was an investment in a particular technology and production site, not proof that paper had already replaced plastic packaging throughout Canada. The examples of food wrap and medical packaging also concern different performance requirements. A material suitable for one use may not work for another, which is why a funding announcement should retain words such as “could” when describing future applications.

A useful alternative has to do the whole job

Packaging needs to protect its contents as well as meet a disposal goal. For readers evaluating the proposal, useful questions concern strength when wet, barrier performance, additives and compatibility with existing recycling facilities. A paper-based package may still contain coatings that affect its end-of-life route. The environmental comparison should therefore include the complete package and the product it protects, rather than the main fiber alone. The government’s July 2019 release is a clear source for the investment amount and intended work; later production records and product testing would be needed to show which promised uses reached the market. Canada’s July 2019 Domtar investment announcement.

What happened to the plastics ban

Canada went ahead with the ban. In 2021 the federal government listed “plastic manufactured items” as toxic under the Canadian Environmental Protection Act, and its regulations phased in a ban on making and selling six single-use items: checkout bags, cutlery, food service ware, stir sticks, straws and six-pack rings, with the sale of the listed items prohibited after 20 December 2023. On 16 November 2023 Federal Court Justice Angela Furlanetto ruled that the toxic listing was “unreasonable and unconstitutional” because the category was too broad. On 30 January 2026 the Federal Court of Appeal overturned that ruling and upheld the 2021 listing; a separate challenge to the regulations themselves had been on hold pending that case.

Sources: CBC News, 16 November 2023: Judge says Ottawa listing plastic items as toxic was “unreasonable and unconstitutional” CP24 (Canadian Press), 30 January 2026: Court of Appeal rules decision underlying feds’ plastic ban reasonable

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