Canada’s forest ministers have produced A Forest Bioeconomy Framework for Canada to leverage the country’s vast biomass reserves and extend their production and deployment far beyond current usage. The report was released in September and unanimously endorsed by the Canadian Council of Forest Ministers (CCFM), which co-authored the document along with Natural Resources Canada (NRCan).

It urges coordinated action to position Canada as a leader in advanced bioproducts and technologies, attracting new investment and increasing its participation in the transition to a low-carbon economy. The non-binding commitment proposes action guided by four pillars to explore ways to reverse Canada’s historical track record of low productivity and weak corporate R&D spending by building a so-called “circular economy”.

“The circular economy will emerge from forestry management based on high-quality data and cutting-edge technology, including virtual reality, that is calibrated to local needs and conditions to maximize efficiency and minimize waste,” states the framework. “The anticipated results include new investments, more jobs, more revenues, better engagement with Indigenous peoples, new businesses, new partnerships, new supply chains, new technologies, better inventory information, and greater overall awareness of the integral role forests play in the Canadian economy.”

Climate change, environmental sustainability and economic growth are at the centre of the framework’s holistic approach, emphasizing the benefits of clean technologies, renewable energy sources and bio-based manufacturing products that reduce carbon output while preserving biodiversity. The framework argues that the best way to achieve these multiple objectives is through improved supply chain management, building design, community resilience, consumer behaviours and sustainable production of goods and services derived from biomass.

“Canada clearly has strong advantages. Resources and feedstocks are geographically represented across the country but we need to transform the current industry and do it through innovation,” says Trevor Stuthridge, executive VP at FP Innovations. “The framework shows how relatively competitive companies can come together with support for universities and colleges (and) put resources into research and innovation to future proof the sector.”

The framework also addresses the need for new products, services and markets to replace markets such as news print which is being eroded by the transition to digital technologies. That includes branching out into other industry sectors not traditionally associated with forestry or biomass.

“After transforming biomass, the technology platforms and scale-up technologies are the same,” says Stuthridge, adding that organizations such as Genome Canada and Bioindustrial Innovation Canada (BIC) are ideally positioned to play key roles. “We also have a coordinated bioeconomy base for universities and colleges with UBC (Univ of British Columbia) taking the lead.”

The framework was unveiled in parallel to a proposal for a BioDesign Supercluster backed by the Forest Products Association of Canada (FPAC), FPInnovations, BIC and Genome Canada for a piece of the $950 million in Innovation Superclusters Initiative funding. That proposal was unsuccessful in moving to the full proposal stage as it was not included in the nine successful proposals being announced across Canada this week by Navdeep Bains, minister of Innovation, Science and Economic Development.

Stuthbridge notes (in an interview conducted before the ISED superclusters announcements) that the framework makes many of the same points as the BioDesign Supercluster proposal although they are not directly related. He adds that the framework addresses the five gaps identified in the BioDesign proposal and could benefit from increased government support.

Gaps in the Canadian bioeconomy

1. Production imbalance between generation capacity and market demand,
2. Sub-optimal feedstock value recovery, where production economics demand higher conversion efficiencies,
3. Value chain barriers, where feedstock supply or downstream infrastructure gaps exist,
4. End-market diversity, where insufficient breadth of market applications increases investment risk, and
5. Market access, where regulatory or social licence constrain deployment.

“We believe we can be a world leader in the bioeconomy (but) companies are looking for support to spread the risk,” he says. “The majority of bioeconomies globally have had government support.”

Innovation support

The framework’s fourth pillar — Support for Innovation — calls for a bioeconomy hub at the core of an ecosystem from researchers and research laboratories to the marketplace to develop the necessary advanced manufacturing processes, incentivize new investment and establish a technology-driven business cluster.

The framework contends that “transformation of the Canadian forest sector is still in its early stages” and requires continued support for research, development and demonstration. Growth can be sustained by embedding innovation systems within regional land-use planning processes and developing science-based forest management tools. It says programs at FP Innovations and the National Research Council to support “novel concepts and breakthrough technologies” should be prioritized.

The innovation pillar recommends the use of innovative tax measures (accelerated capital cost allowances and tax credits) to encourage patient capital investment “to level the playing field between forest bioeconomy ventures and traditional natural resources extraction operations”. It also notes that existing foundational research and skills funding support through the Natural Sciences and Engineering Research Council and Mitacs can be further leveraged to advance the forest bioeconomy.

Stuthridge notes that previous innovation support from the federal government has resulted in highly successful technology breakthroughs, particularly the Investments in Forest Industry Transformation (IFIT) program offered by NRCan’s Canadian Forestry Service, launched in 2010.

“It’s been oversubscribed by industry and has helped to improve sector efficiencies. We need more of that,” he says.

In June, the IFIT and Forest Innovation Program (FIP) were both extended for three years beginning in FY17-18 with $55 million and $63 million respectively as part of the Softwood Lumber Action Plan.

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