Canada Commits Nearly C$60 Million to Pulp, Paper and Advanced Fibre Projects

The Government of Canada has announced funding commitments totaling nearly C$60 million for projects aimed at strengthening the country's pulp, paper, fibre and advanced biomaterials sectors as part of a broader C$130 million investment package supporting forest industry transformation.

Among the largest allocations is a C$37 million investment awarded to the Forest Enhancement Society of BC for its Fibre Recovery project in Kamloops, British Columbia. The initiative will increase the collection, processing and transportation of low-value and residual forest fibre to facilities producing pulp, bioenergy, pellets and other value-added products. The program is designed to improve fibre utilization and reduce the volume of residual material that would otherwise be burned.

FPInnovations secured a combined C$19 million through two national programs focused on advancing technology adoption and sustainable forest management across Canada's forest sector. The organization's Transformative Technologies Projects (TTP) program received C$16.6 million to develop and demonstrate automation, digitalization, artificial intelligence and low-carbon manufacturing technologies, including innovations relevant to pulp and paper production. An additional C$2.4 million was awarded through the Forest Research Institute Initiative (FRII), which supports sustainable fibre supply and promotes broader use of pulp, packaging and bio-based products.

In Newfoundland and Labrador, Corner Brook Pulp and Paper Ltd. received C$2 million to undertake a Front-End Engineering and Design (FEED) study examining options for transforming its mill operations. The study will evaluate opportunities to diversify into higher-value products, including packaging grades, specialty papers, wood products and energy solutions.

CelluForce Inc. of Windsor, Quebec, was awarded C$1.9 million to modernize its cellulose nanocrystal (CNC) production operations. The project will enable the manufacture of new bio-based products for applications in sectors such as cosmetics and agriculture while supporting Canada's position in advanced cellulose materials.

Additional support was directed toward innovation in forest-based biomaterials. Innofibre – Centre d'innovation des produits cellulosiques received C$266,900 to advance research into wood-derived biocarbon technologies for industrial decarbonization. The project seeks to create new markets for forest biomass while supporting the development of lower-carbon manufacturing processes.

The investments reflect Canada's growing focus on fibre optimization, mill modernization, specialty paper development, sustainable packaging, advanced cellulose products and forest-based bioeconomy opportunities. Together, the projects are expected to strengthen the competitiveness of Canada's pulp and paper sector while supporting innovation, emissions reduction and long-term fibre utilization.