Up to $10 Million for Wood Manufacturing Equipment
Program Supports Increasing Use of Canadian Wood
Canada’s Investments in Forest Industry Transformation (IFIT) Steam 1: Capital Projects) is advertising 50% grant (non-repayable) funding up to $10 million to pilot, commercialize or transform wood products, processes, and technologies to diversify and increase demand as well as strengthen sector global competitiveness for Canadian wood. Eligible recipients include for-profit companies located in Canada that:
- produce forest products in an existing forest product manufacturing facility (for example, pulp, paper, or solid/engineered wood products facility), or
- are/will be new entrants in the forest sector undertaking such transformational projects or
- are primarily based on wood fibre production or
- integrating new or existing industrial processes in the forest sector.
Project categories and examples:
- Advanced Biomaterials and Biochemicals: Advanced materials and high-value chemical applications derived from wood components (i.e., lignin, cellulose, and hemicellulose).
- Pulp and Paper Diversification: Innovative products that significantly diversify revenue streams in an existing pulp and paper facility or lead to innovative products derived from pulp in a stand-alone facility.
- Next Generation Building Products: Innovative structural and architectural applications such as advanced wood-based building systems/products that displace traditional building materials such as concrete, steel, and fossil-based insulation materials.
- Advanced Biofuels: Wood fibre-derived biofuels from thermochemical or biochemical processes in liquid, gaseous and solid form.
- Process Efficiency and Decarbonization: Reducing energy consumption or greenhouse gas (GHG) emission, or process improvements. Projects advancing BioEnergy with Carbon Capture and Storage (BECCS) are eligible within this category and identified as an area with special considerations within the context of the IFIT program.
- Improved Fibre Utilization: Using harvest residuals, pest/fire damaged wood, reclaimed/recycled wood fibre, and other sources of underutilized wood fibre, resulting in the value generated from the harvest wood.
- Capital equipment and relevant upgrades/retrofits.
- Professional and technical consultancy.
- Employee salaries and benefits.
- Direct overhead costs, capped at 1.5% of eligible expenses.
- Assorted charges including licensing fees and environmental assessments/audits costs, travel expenses, publicity materials expenses.
Projects must represent an innovative advancement of a technology or process improvement which enhances Canada’s forest sector competitiveness and/or demonstrate a first-in-kind innovation or an early adoption of technology that requires further de-risking in a range of conditions before widespread implementation. The program does not support projects at a research and development stage, or endeavors linked to the export of softwood lumber.
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