ARCHIVED - Government of Canada Invests in Forest Sector Innovation in Quebec

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The Government of Canada recognizes that our forest sector is an important economic driver and a valued source of skilled, high-paying jobs in rural communities across our country.

Since 2006, the Government of Canada has made direct investments totaling $693.7 million in support of Quebec’s forest industry and the communities that depend on it. Across Canada, the Government invested a total of $1.8 billion since 2006 in investments for the forest sector.

Working with industry, provinces and other partners, we are helping to expand opportunities for our forest sector to create jobs. New technologies are offering tremendous opportunities for jobs and growth. Our government’s efforts to help Canada’s forest industry benefit from these opportunities include new phases of support to help them become more energy-efficient and innovative.

Forest Innovation Program
Funding for FPInnovations is being made under the $66 million Forest Innovation Program announced in Economic Action Plan 2012, which focuses on development of transformative technologies through lab research. This program also explores ways to develop new partnerships and ensure an increased focus on effective technology transfer to small- and medium-sized enterprises.

FPInnovations is Canada’s national forest industry research institute and focuses on the development of emerging and breakthrough technologies such as biomass harvesting and conversion, and nanotechnology. The organization conducts forest products research and is an important partner in deploying promising new technologies into the forest products industry.

Investments in Forest Industry Transformation (IFIT)
The IFIT program was created in 2010 to support Canada’s forest sector in becoming more economically competitive and environmentally sustainable, using targeted investments in innovative technologies. The $100 million IFIT program supports projects across the country that are world-first and Canadian-first technologies in several provinces and across a range of sub-sectors and businesses. These projects aim to reduce the risk of commercializing new technologies and encourage broader adoption of the technologies across the industry.

Pulp and Paper Green Transformation Program (PPGTP)
In 2009, the Government of Canada took decisive action to improve the sustainability of pulp and paper mills by creating the $1-billion Pulp and Paper Green Transformation Program. This program has significantly improved the environmental performance of Canada’s pulp and paper industry through a record level of investment in green technologies. Pulp and paper facilities have been transformed, opening up access to new revenue streams from their production of renewable energy, while reducing costs through energy efficiency improvements.

This program supported 98 projects across the country, providing direct environmental, economic and social benefits for the recipient mills and the communities they sustain. Benefits include support for 14,000 jobs, improved air quality, and lower fossil fuel consumption and greenhouse gas emissions. Today’s announcement includes;

  • $10 million for Fibrek S.E.N.C. in Saint-Félicien, Quebec, for two projects to help improve the mill’s energy efficiency while increasing its generation of renewable electricity.
  • $800,000 for Kruger Wayagamack in Trois-Rivières, Quebec, for the installation of new equipment to improve the mill’s energy efficiency while reducing its greenhouse gas emissions.
  • $15 million for Nanaimo Forest Products in Nanaimo, B.C., to improve the mill’s overall energy efficiency.
  • $2.5 million for Zellstoff Celgar in Castlegar, B.C., for phase III of a project to increase the amount of renewable electricity generated by the mill.
  • $3.8 million for Paper Excellence (formerly Tembec) in Skookumchuck, B.C., for a project to increase the amount of renewable electricity generated by the pulp mill.
  • $2.6 million for Meadow Lake Mechanical Pulp in Meadow Lake, Saskatchewan, to improve the energy efficiency of the mill.
  • $8 million for Tolko Kraft Papers in The Pas, Manitoba, for two projects expected to improve the mill’s environmental performance, increase renewable energy production and save over 120,000 gigajoules of energy per year.
  • $2.3 million for Domtar Inc. in Espanola, Ontario, for two projects to enhance the environmental performance of the mill through the installation of electricity and steam-saving equipment, while reducing greenhouse gas emissions.
  • $33.2 million for Resolute Forest Products in Northern Ontario for two projects to increase the production of renewable electricity and improve environmental performance.
  • $19 million for AV Terrace Bay Inc. in Terrace Bay, Ontario, for two projects to increase the mill’s renewable thermal energy production, improve its internal energy efficiency and significantly reduce odours.
  • $12 million for AV Cell Inc. in Atholville, New Brunswick, for a project to increase the mill’s generation of renewable energy from the combustion of biogas.

Together, these projects are producing enough renewable energy to meet the equivalent of the annual power needs of all of the houses in Calgary, Alberta. Together these projects are also expected to directly reduce greenhouse gas emissions of the Canadian pulp and paper sector by more than 10%. In addition, the projects are expected to create $149 million annually in revenues for Canadian pulp and paper mills.

The two PPGTP projects at Resolute Forest Products in Saint-Félicien involve the installation of a new turbogenerator and improvements to the mill’s heat recovery system. These changes are enabling the generation of an estimated 27,000 megawatt hours per year of additional renewable electricity and saving enough energy annually to heat the equivalent of 4000 homes.

Media may contact: 

David Provencher
Press Secretary
Office of Canada’s Minister of Natural Resources


Media Relations
Natural Resources Canada


Marie-Josée Paquette
Press Secretary
Office of the Minister of Infrastructure, Communities and Intergovernmental Affairs and
Minister of the Economic Development Agency of Canada for the Regions of Quebec