The Media Room

2011/14 (a)

Backgrounder

Federal Government Invests in Forest Innovation and the Bioeconomy

The Government of Canada recognizes the vital role the forest sector plays as an economic engine in rural communities, a driver of innovation and a key player in the growing bioeconomy.

Canada’s forest sector is undergoing important restructuring due to a number of competitive challenges, including low demand in the United States’ residential construction market, increased competition from companies in non-traditional forestry countries and a global recession. While still fragile, segments of the industry are seeing a recovery, and new technologies and markets offer promising possibilities for Canada’s forest sector. Diversification of products is essential to the sector’s continued evolution and its future success.

That is why the Government is working with industry, provincial governments and other key stakeholders to help transform the industry and to help it take advantage of growing bioeconomy opportunities where innovation and environmental performance are key.

Demonstrating Transformative Technologies

The Government of Canada, through FPInnovations, is investing over $1.05 million for a pilot-scale demonstration project at the Alberta Newsprint mill in Whitecourt, Alberta. This investment in new technology will help the mill improve the quality of its white-water streams and enable the processing of higher volumes of pine wood attacked by the mountain pine beetle (MPB).

The project is a collaboration between FPInnovations, a not-for-profit organization that focuses on the research and development of next-generation forest products; Alberta Innovates Bio Solutions; and Alberta Newsprint Company. Funding is provided through the $40-million Transformative Technologies Pilot Scale Demonstration Program (TTPSD) from Canada’s Economic Action Plan. The TTPSD is helping forest sector mills to build pilot-scale demonstration projects to implement transformative technologies for eventual commercial applications.

Under the Economic Action Plan, the Government of Canada lists innovation of forest products and market diversification among its key priorities for the forest industry. By collaborating with FPInnovations and Alberta Newsprint Company, the Government is acting on its commitments to support the sustainability and viability of the Canadian forest sector.

Promoting Forest Innovation and Investment

The key to a strong future for the forest sector is to promote innovation and entrepreneurial activity within a competitive business environment. The Government of Canada is working to help Canada’s forest sector take advantage of new market opportunities by researching innovative products that meet the needs of the marketplace.

As outlined in Canada’s Economic Action Plan, the Government of Canada has delivered $170 million over two years to improve the forest sector’s long-term competitiveness through renewed investments in market diversification and forest innovation. This funding includes $120 million to help promote forest innovation and investment and $50 million to expand market opportunities for Canadian forest products. Other key federal initiatives in support of forest sector sustainability and renewal include the $1-billion Pulp and Paper Green Transformation Program. Budget 2010: Leading the Way on Jobs and Growth committed an additional $100 million over four years to support the development and commercialization of advanced technologies in the forest sector.

In addition to its ongoing support of Canada’s forest industry, the Government of Canada established the $1-billion Community Adjustment Fund and the $1-billion Community Development Trust to help reduce the short-term impacts of economic restructuring in single-industry communities facing challenges as a result of the global economic downturn.

For additional details on the Government of Canada’s Economic Action Plan, visit www.actionplan.gc.ca.

Robert Lynch

Office of Minister Merrifield

Ottawa

613-617-3276

Media Relations

Natural Resources Canada

Ottawa

613-992-4447

NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media/index-eng.php.