Ontario, Canada: Reorienting Local Economies by Converting the Atikokan and Thunder Bay Coal-Fired Generating Stations

This case study examines Ontario's phase-out of coal-fired electricity, focusing on the conversion of the Atikokan and Thunder Bay generating stations to biomass to mitigate local economic disruption. While the conversions initially preserved jobs and supported the forest products sector, the study notes a lack of preemptive just transition planning and the eventual closure of the Thunder Bay plant due to low energy demand.

• Ontario was the first industrial region in North America to phase out coal generation, a process that affected approximately 770 jobs across four publicly owned plants with a total capacity of 3.3 GW. The phase-out, mandated by 2007 legislation for completion by 2014, significantly lowered greenhouse gas emissions, an impact described as equivalent to removing up to 7 million cars from the road.
• The provincial government initially lacked a proactive just transition plan, intending to decommission all four plants and replace capacity in different communities. This led to advocacy from local officials and citizens who feared for their towns' survival. In response, Ontario Power Generation (OPG) converted the Atikokan and Thunder Bay stations to biomass, a move supported by a Pembina Institute report which found biomass to be more sustainable than natural gas for replacement.
• The Atikokan Generating Station (AGS) conversion was critical due to the town's economic dependence on the plant, which employed 90 people and supported 200 local businesses. A shutdown was estimated to cause a CAD 5.3 million ($3.2 million) annual decrease in local spending. To facilitate the transition, the government allocated CAD 4 million ($3.5 million) in 2006 for cleaner energy research, leading to the Atikokan Bio-Energy Research Centre (2007-2010). By 2014, AGS reopened as the largest 100% biomass-burning power plant in North America.
• The Thunder Bay Generating Station (TGS) was converted to 100% biomass and became the first of its kind globally to use steam exploded wood pellets in 2015. However, because it was a peaking plant in an area with low energy demand and overcapacity, it was closed in 2018. The closure affected 70 employees and drew protests from the Power Workers’ Union in Canada, who argued that the underutilization of TGS and AGS harmed the regional biomass industry.

APA

World Resources Institute (2021). Ontario, Canada: Reorienting Local Economies by Converting the Atikokan and Thunder Bay Coal-Fired Generating Stations. https://www.wri.org/snapshots/ontario-canada-reorienting-local-economies-converting-atikokan-and-thunder-bay-coal-fired

Chicago

World Resources Institute. Ontario, Canada: Reorienting Local Economies by Converting the Atikokan and Thunder Bay Coal-Fired Generating Stations. 2021. https://www.wri.org/snapshots/ontario-canada-reorienting-local-economies-converting-atikokan-and-thunder-bay-coal-fired.

Wikipedia

{{cite report |author=World Resources Institute |title=Ontario, Canada: Reorienting Local Economies by Converting the Atikokan and Thunder Bay Coal-Fired Generating Stations |date=1 April 2021 |url=https://www.wri.org/snapshots/ontario-canada-reorienting-local-economies-converting-atikokan-and-thunder-bay-coal-fired |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2021ontario, author = {{World Resources Institute}}, title = {{Ontario, Canada: Reorienting Local Economies by Converting the Atikokan and Thunder Bay Coal-Fired Generating Stations}}, institution = {World Resources Institute}, year = {2021}, month = apr, url = {https://www.wri.org/snapshots/ontario-canada-reorienting-local-economies-converting-atikokan-and-thunder-bay-coal-fired}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }