Investments in Forest Industry Transformation Program

Investments in Forest Industry Transformation Program (Voted)

Start date

June 17, 2010

End date

March 31, 2018

Fiscal year for terms and conditions

2014-15

Strategic Outcome

1 – Canada’s Natural Resource Sectors are Globally Competitive

Link to department's Program Alignment Architecture

1.2 – Innovation for New Products and Processes and 1.2.2 – Forest Sector Innovation

Description

The objective of Investments in Forest Industry Transformation (IFIT) is to support forest industry transformation so that the forest industry is more economically viable and environmentally sustainable. This will be achieved by investing in innovative technologies that lead to a more diverse, higher-value product mix including bioenergy and renewable power, as well as biomaterials, biochemicals, and next generation building products.
The Program will fund innovative projects implementing transformative technologies at the pilot to commercial scales that direct wood fibre and by-products from wood processing into higher value uses, which 1) increase the total revenues available from a log, 2) diversify product lines for the forest industry, stabilizing economic performance, and 3) produce renewable energy and other products that are beneficial to the environment. By providing funding to Canadian forest firms for capital investments in bioenergy or bioproduct industrial processes to advance these technologies towards full, commercial-scale implementation, this Program will broaden and build upon previous investments in forest sector transformation.
This transfer payment program does not have any repayable contributions

Results achieved

Over the past year, four projects were completed at facilities in Canada that represent first-in-kind innovations in advanced building products, new bio-chemicals, biogas from effluent and advanced seedling production. These include:

• The conversion of an aging oriented strandboard plant to one that will produce a value-added exterior wood siding product for the residential and commercial market that is resistant to decay, fungi and termites.
• The installation of an innovative anaerobic digestion system at a pulp mill to produce biogas which can then be used to generate electricity and heat.
• A hemicellulose hot water extraction process that will replace the existing soda-based chemical pulping process with a more environmentally friendly one which will result in a number of products ranging from biofuels to zero-calorie sweeteners.
• The construction of a state-of-the-art, fully mechanized facility that will produce up to four million improved tree seedlings per year with enhanced resistance through mass inoculation against attacks from insects and fungi.

Comments on variances

The variance represents an amount transferred out of the IFIT Program to the Departmental Class Contributions Program for the purposes of supporting an event linked to the program’s mandate. The contribution supported PaperWeek Canada 2015 for the purpose of furthering key programmatic priorities such as sector transformation, innovation and competitiveness. The contribution enabled the program to catalyze opportunities for collaboration and discussion amongst key stakeholders (e.g. forest industry and technology providers) that would seek to work with the IFIT Program towards these same priorities.

Audits completed or planned

Recipient audits were performed on 11 of the 25 projects (44%) funded by the Program by the end of 2015-16. Audits will continue to be performed as projects near completion.

Evaluations completed or planned

An overall multi-program forest innovation evaluation was completed in 2014-15. Aspects directly concerning the IFIT program were completed in 2013-14.

Engagement of applicants and recipients

Program applicants are supported through the establishment of a dedicated program website, which includes access to program guides, eligibility requirements, and project announcements, as well as program administration contact details. Calls for proposals were widely advertised through public press releases, e-mail distribution lists, and liaisons with a wide range of associations, other government departments, and other stakeholders. Selected program recipients are further engaged through regular communication with program administrators to monitor progress on the achievement of program objectives.