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Investments in Forest Industry Transformation Program (Voted)

General information
Name of transfer payment program Contributions in support of Investments in Forest Industry Transformation Program (Voted)
Start date June 17, 2010
End date March 31, 2022
Type of transfer payment Contribution
Type of appropriation Estimates
Fiscal year for terms and conditions 2017-18
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

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 as 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

Over the past year, five projects were completed at facilities in Canada that represent first-in-kind innovations in advanced building products, new bio-chemicals, and renewable energy. These include:

  • the first mill in North America to produce dissolving pulp from birch wood;
  • the first company in North America to design and install a system to clean forest residues, making a viable feedstock for their pellet plant;
  • the first of its kind in North America to produce wood fibre to be used in the production of wood-plastic composites;
  • the world’s first commercial facility using technology designed specifically for the conversion of forest residues to liquid biocrude for energy applications; and
  • the first company in North America to develop and automate production of dowel-laminated timber for green construction projects.

The Program also launched its fourth call for proposals, which attracted close to 60 proposals and more than $350 million in requests for funding. The Program is now working with a new cohort of potential applicants to help bring new innovations to the forest products sector.

Comments on variances N/A
Audits completed or planned An audit of the IFIT Program was not completed in 2017-2018 or planned in the coming year.
An Audit of the IFIT Program was conducted in 2012-2013 (part of the 2011-2014 Risk-Based Audit Plan).
The program conducted third-party financial audit of 3 IFIT recipients in 2017-2018.
Evaluations completed or planned

Completed: 2013-14 (as part of sub-program 1.2.2 – Forest Sector Innovation)

Planned: 2017-18 (The program is currently being evaluated with a report on results expected by winter 2019).

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.
Performance information (dollars)
Type of transfer payment 2015‑16 Actual spending 2016‑17 Actual spending 2017‑18 Planned spending 2017‑18 Total authorities available for use 2017‑18 Actual spending (authorities used) Variance (2017‑18 actual minus 2017‑18 planned)
Total grants 0 0 0 0 0 0
Total contributions 20,950,000 26,640,000 35,020,728  35,121,457  35,120,891  100,163
Total other types of transfer payments 0 0 0 0 0 0
Total program 20,950,000 26,640,000 35,020,728  35,121,457  35,120,891  100,163

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