Deadline: 30-Jun-24
Funding has been launched under the Investments in Forest Industry Transformation (IFIT) program to facilitate the adoption of transformative technologies and products in the Canadian forest sector by bridging the gap between development and commercialization.
The program aims to create a more competitive, resilient, and environmentally sustainable sector with a focus on innovative, low-carbon projects that result in new or diversified revenue streams.
IFIT program will increase its efforts to help improve the environmental performance of the forest sector by supporting demonstration and adoption projects that contribute to the decarbonization of industrial processes, as well as the efficient use of resources that generates more value from the same amount of wood. In addition to continuing to fund projects that produce renewable energy and sustainable bioproducts, IFIT will seek to invest in projects that integrate technologies leading to greater energy efficiency and explore bioenergy carbon capture in forest sector operations. These investments will enable the next wave of innovation, solidifying Canada’s position as a leader in forest sector transformation.
IFIT Program Streams
- Stream 1: Capital Investment Projects: transformative projects by forest sector firms to diversify product streams, promote responsible resource use, and improve environmental performance.
- Stream 2: Studies: studies by forest sector firms or industry accelerators that aim to advance key topics for innovation with widespread sharing of results.
Funding Information
- The maximum IFIT contribution to any project over the course of the program is $10 million.
- Stream 1: Capital Investment Projects
- The maximum amount payable by the IFIT program to a recipient will be 50% of the total eligible cost of a capital project.
- Stream 2: Studies
- The maximum amount payable by the IFIT program to a recipient will be 50% of the total eligible cost of a project.
- The minimum IFIT contribution amount for a study is $100,000 and the maximum IFIT contribution amount is $1,000,000. The maximum number of studies that can be funded per applicant is three (3).
- Stream 1: Capital Investment Projects
- For studies selected for funding, it is possible that the applicant may not receive the full amount requested. The amount of funding contributed to each study will be based on the number of successful projects, the results of the proposal evaluations, and the funding envelope available in any given year. The determination of the amount of the contribution will also consider the documentation, financial plan (including sources and amount of funding from other funders), a risk-based due diligence assessment, and other documents provided through the application process.
- IFIT program funding will be available to recipients until March 31, 2026. All IFIT eligible expenditures must be incurred and paid on or before March 31, 2026.
Expected Outcomes
- Improved environmental, social, and economic sustainability of the forest sector.
- Development of innovative products and processes within the forest sector.
- Engagement of Canada’s forest stakeholders in implementing projects.
Eligible Projects
- Capital Investment Projects
- Be primarily based on wood fibre OR integrated within new or existing industrial processes in the forest sector.
- Represent an innovative advancement of a technology or process improvement to ensure the competitiveness of operations in Canada’s forest sector.
- 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.
- Studies
- Advance a concept, technology, process, or product primarily based on wood fibre OR integrated within new or existing industrial processes in the forest sector.
- Investigate the feasibility and/or advance a concept within the targeted innovation categories.
- Disseminate project learnings beyond the applicant’s corporate structure.
Eligible Recipients
- Recipients under the Capital Investment Project Stream must be for-profit companies located in Canada. They must either produce forest products in an existing forest product facility (for example, pulp, paper, or solid/engineered wood products facility) OR are/will be new entrants in the forest sector for the purpose of the project. This includes clusters, joint ventures, and consortiums, provided that a for-profit company acts as the lead applicant.
- For clusters, joint ventures, and consortiums, a for-profit organization must be designated as the recipient of IFIT program funding. This organization will become the legal signatory for the funding agreement and will be responsible for managing the project and reporting on results.
- Additional information under Stream 2: Studies
- Not-for-profits and industry associations. The proposed scope of work must include an industry collaboration with a demonstrated pathway toward commercial scale activities.
For more information, visit Natural Resources Canada.