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2011/100 (a)


Harper Government Secures Jobs Through
Forest Sector Innovation and Renewal

The Government of Canada is contributing $50.3 million to 18 projects that will benefit local communities and advance transformation in Canada’s forest sector. Federal programs are supporting important investments that improve the environmental performance of mills to help position the industry at the forefront of the bio-economy.

As well, the Government is working with industry, provincial governments and other key stakeholders to help our forest sector take advantage of the growing bio-economy, where innovation and environmental performance are key.

Today’s project funding announcement falls under three distinct programs:

Pulp and Paper Green Transformation Program (PPGTP)

The Government of Canada announced the creation of this program in June 2009. Canadian pulp and paper companies that produced black liquor — a byproduct of the pulping process — were eligible to access $1 billion in funding to improve their energy efficiency, their capacity to generate renewable energy, and the overall environmental performance of their pulp and paper facilities.

Today’s PPGTP announcements across the country include:

British Columbia

  • West Fraser Mills Ltd. in Quesnel is receiving $2 million for its Quesnel River Pulp mill Waste Water Heat Exchanger Upgrade Project to improve the mill’s energy efficiency through the installation of four heat exchangers.
  • Cariboo Pulp & Paper Company in Quesnel is receiving $5.5 million to make the facility’s processes more green and lower its environmental footprint by reducing the amount of chemicals that are delivered to the mill.


  • West Fraser Mills Ltd. in Slave Lake is receiving $5.1 million to reduce greenhouse gas emissions and improve the mill’s energy efficiency.


  • Tolko Industries Ltd. in The Pas is receiving $2.5 million for three projects to increase the mill’s energy efficiency by reducing steam consumption and fossil fuel use.


  • Domtar Inc. in Windsor is receiving $5.5 million for two projects that together are expected to reduce the mill’s water use and energy consumption while improving energy efficiency and increasing production of renewable electricity.
  • Fibrek S.E.N.C. in Saint-Félicien is receiving $5.1 million to increase the mill’s energy efficiency and environmental performance.
  • Kruger Wayagamack Inc. in Trois-Rivières is receiving $6.3 million for five projects to improve environmental performance through upgrades to mill processes.
  • Fortress Specialty Cellulose Inc. in Thurso is receiving $9.9 million to generate more renewable thermal energy and reduce its greenhouse gas emissions.

Collectively, these 15 projects are expected to generate enough renewable energy to power nearly 5,600 homes. They are also expected to save enough energy to heat an additional 18,000 homes while reducing greenhouse gas emissions by 49,000 tonnes per year. This quantity of greenhouse gas is equivalent to the emissions produced annually by 13,500 cars.

Investments in Forest Industry Transformation (IFIT)

The $100-million Investments in Forest Industry Transformation Program addresses the broader need for a transformation in the forest industry that will lead to a more diversified and higher-value forest product mix. The program was announced in Budget 2010 and runs until March 2014.

Today’s IFIT announcement:

  • Alberta-Pacific Forest Industries Inc. in Boyle, Alberta, is receiving $4.5 million to diversify its product offerings by extracting and purifying biomethanol from its pulping process. The extraction process being implemented will be the first project of its kind in the world.

Almost $1.2 billion in project proposals were submitted in response to the program’s second and final Call for Proposals, which closed at the end of September. This demonstrates great appetite within the Canadian forest sector for the implementation of highly innovative technologies in the areas of bio-energy, biochemicals, and new solid-wood products. Moving forward, such projects will help to diversify the sector’s product mix and provide solid support for its ongoing transformation.

Transformative Technology – Pilot Scale Demonstration Program (TTP-PSD)

The objective of the TTP-PSD is to demonstrate the feasibility of new forest products technologies in pilot-scale demonstration in industrial settings.

Today’s TTP-PSD announcements:

  • Tembec in Temiscaming, Quebec, is receiving $3.5 million in a joint project with the Government of Quebec to develop innovative wood products made of cellulosic composites.
  • Lauzon Planchers de bois exclusifs in Saint-Norbert, Quebec, will receive $390,000 to demonstrate a new technology that can increase the surface hardness and durability of hardwood flooring through the application and polymerization of resins.

For more details about the Pulp and Paper Green Transformation Program, visit

For more details about the Investments in Forest Industry Transformation program, visit

Media may contact:

Patricia Best
Director of Communications
Office of the Minister
Natural Resources Canada


Media Relations
Natural Resources Canada

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