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Investments in Forest Industry Transformation Program (Voted)

General information

Name of transfer payment program Investments in Forest Industry Transformation Program (Voted)
Start date June 17, 2010
End date March 31, 2018
Type of transfer payment Contribution
Type of appropriation Estimates
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 > 1.2.2 – Forest Sector Innovation
Description The objective of the Investments in Forest Industry Transformation (IFIT) program is to support transformations that will make the forest industry more economically viable and environmentally sustainable. The objective 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, biochemical and next generation building products.

The Program will fund innovative projects that are using transformative technologies at the pilot and commercial scales that direct wood fibre and by-products from wood processing into higher value usages 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 and 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 In 2016-17, five new funding agreements were signed under the IFIT program. These projects are first-in-kind near-commercial or commercial applications in the forest sector. As a result of these projects, 5 new product offerings are being produced at commercial scale and new applications are being developed:


  • Two bioenergy projects introduced new technologies for the production of liquid and solid biofuels (cellulosic ethanol and pellets) that can be used for a range of applications, including for heating and transportation.
  • One solid wood project will see dowel-laminated timber (100% wood, no nails) produced at a commercial scale for use in a tall wood timber structures, prefabricated walls, roof and floor panels.
  • One biomaterials project will be extracting and densifying thermomechanical pulp TMP) fibre through a North American first process. The fibre will be used in a range of applications including wood-plastic composites. The mill is able to diversify to produce both a commodity (newsprint) and a new niche product for market.
  • One biochemical project will be producing dissolving pulp using birch, an abundant but underutilized tree species in Canada. This specialty pulp product is an ingredient that can be used in many everyday products including clothing.
Comments on variances N/A
Audits completed or planned No internal audits were completed in 2016-17 and none are planned for the coming year.
Evaluations completed or planned No Evaluations were completed in 2016-17 and none are planned for the coming year. An evaluation of Forest Sector Innovation is planned to commence in 2017-18. 
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, 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.

Targeted recipient groups include companies that produce forest products that have existing forest product manufacturing facilities (e.g., pulp, paper or panel mills) located in Canada.

Performance Information (dollars)

Type of transfer payment 2014-15 Actual spending 2015–16 Actual spending 2016–17  Planned spending 2016–17 Total
authorities available for use
2016–17 Actual
spending (authorities used)
Variance (2016–17 actual minus 2016–17 planned)
Total grants   0 0 0 0  
Total contributions 6,000,000 20,950,000 34,800,000 40,640,000 26,640,000 (8,160,000)
Total other types of transfer payments 0 0 0 0 0 0
Total program 6,000,000 20,950,000 34,800,000 40,640,000 26,640,000 (8,160,000)



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