Canada's forest sector seeks to be a model of collaborative research and innovation

Leveraging a key natural resource

Canadian forestry has emerged as a model for sector-based innovation and could become even more successful if the federal government renews its support for academic-based forestry research and boosts its overall financial contributions. A massive reorganization that began in 2007 is now paying dividends with Canada leading in several niche areas such as the bioeconomy, cellulose nanocrystals and next-generation pulp and paper plants.

Canada's forestry sector is huge, directly employing more than 200,000 people in hundreds of communities across the country. Exports in 2013 topped $28 billion and Canada is the second largest exporter of primary wood products after the US. Yet the industry - like other commodities - is exposed to currency fluctuations, cyclical market trends and structural changes such as the dramatic decrease in demand for newsprint.

To help smooth out the volatility of forestry product revenues and develop new markets, R&D and innovation have become the single largest drivers of a sector in transition.

Natural Resources Canada's Canadian Forest Service (CFS) is a key anchor in the forestry innovation ecosystem as both a performer and funder of R&D, much of which is led by industry. With a FY13-14 budget of $105 million, CFS conducts research in several areas and supports industry-led R&D through FPInnovations - a consolidated, public-private R&D organization and the largest of its kind in the world, with branches in Quebec, British Columbia and Alberta (R$, March 13/15).

The CFS suite of programs spans the spectrum of R&D, including initiatives to help companies break into new markets.

"The CFS is regionally located with five labs across Canada and a staff of 650 with 500 in the regions," says Robert Jones, director of the CFS Industry and Trade Division (National Capital Region). "They do the forestry research and collaborate closely with the provinces and universities."

CFS's in-house staff account for about 60% of the agency's annual budget with the balance directed to industry and academic researchers. The primary vehicle for industry-directed R&D is FPInnovations which has multiple linkages to the CFS and heads up the management of CFS's Canadian Wood Fibre Centre (CWFC).

"FPInnovations has shown itself to be a really good model of research delivery ... It's driven by industry which is a huge advantage," says Jones. "We help to develop the research agenda for FPInnovations as well as funding and governance."

FPInnovations delivers CFS's Transformative Technologies Program, which recently received a one-year, $20.6-million extension. The support has been instrumental in several large projects involving cellulosic nanocrystals (CNC), tall non-residential wood buildings and cost-and energy-efficient pulp and paper facilities.

The Investments in Forest Industry

Transformation (IFIT) program - renewed last year with $90.4 million over four years - was created in 2010 to support the sector in becoming more competitive and environmentally sustainable, accelerating the deployment of cutting-edge technologies at major forest industry facilities. It picks up from the Forestry Innovation Program (FIP), moving technologies to where industry can take over.

FIP projects are conducted by FPInnovations and vetted through an industry advisory process embedded within the organization.

"FIP develops transformative technologies at bench scale and IFIT takes them to the next level with a pilot plant or commercial scale to test new technologies," says Jones.

CNC Spinoff

Joint R&D of CNC has resulted in at least one spinoff. CelluForce is a joint initiative between FPInnovations and Montreal-headquartered Domtar Corp which established the first CNC plant of its kind in the world in Windsor QC.

"It's close to operational, making nano-sized materials derived from tree fibre. It's added to other materials to provide strength and flexibility," says Jones. "Canada is one of the leaders and it started with lab-scale development at FPInnovations. There was a pilot plant, companies became interested and Domtar got involved."

Another unique attribute in the forestry R&D ecosystem is the Canadian Wood Fibre Centre (CWFC), established during the sector's 2007 restructuring. A joint venture between FPInnovations and NRCan, the centre provides FPInnovations with forest-level (upstream) research on resource characterization and resource production, directed by an FPI national advisory committee.

In addition to FPInnovations, the CFS collaborates with other government agencies. The Canadian Food Inspection Agency assists with R&D on biosanitary issues, heat treatment protocols for pulp and paper and on exotic pest research and monitoring as part of a national forestry pest strategy. The National Research Council contributes its expertise on industry codes and product-oriented standards and testing for durability and acoustics.

The Natural Sciences and Engineering Research Council also plays a major role in forestry research, supporting eight networks that interact closely with FPInnovations and NRCan. Funding for those networks expires at the end of the current FY and they are the focus of a $60-million request in the forthcoming federal Budget.

"They look at where the future of the industry will go. It could be new clothing and textiles such as rayons and fabrics," says Jones.

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