Forestry sector examines new technologies for expansion into bio-based products

The Forest Products Association of Canada (FPAC) has completed the second and final phase of a major study examining ways to stimulate the forestry industry by developing promising bio-products for a range of industrial sectors. Undertaken in conjunction with FP Innovations and Natural Resources Canada, the two-year project selected 37 promising technologies that hold commercial potential for converting wood fibre into value-added products for use in the oil and gas, chemical, energy, aerospace, automotive and petrochemical sectors.

The study also yielded several key findings (see chart) which it plans to pursue via a Bio-Pathways Partnership Network, set for launch March 9th. The network will seek to link the targeted technologies to prospective partners in all sectors. The technologies included in the report must have advanced beyond the laboratory and be in either the pilot or demonstration phases.

Perhaps the most significant finding is the consensus that co-locating biomoass technologies and facilities with pulp and paper and lumber mills situated throughout Canada's hinterlands is the best way to to generate commercialize-scale products and utilize forestry waste streams, .

"We didn't know the outcome but we found that when we looked at the 37 technologies, 99% of the people we spoke to said we should integrate production and try to do this with existing industry," says Catherine Cobden, FPAC's VP economic and regulatory affairs. "Adding to traditional lumber and paper mills is more economically feasible and benefits the 300 communities are depend on the forestry sector ... Environmentally it's the best way to go because it uses waste fibre instead of new trees."

For FP Innovations — Canada's main engine for forestry R&D — the Bio-Pathways Project report provides insights that could prove invaluable for directing its future R&D efforts.

"The report identifies the best pathway to support the research and innovation pathways we have so that we can focus our efforts in these areas," says Andrew Goodison, senior project manager of the financial modeling component of the Bio Pathways project. "It also helps our management understand the key drivers that will make these types of technologies successful, bringing them into our program and the applied research that we do."

Goodison says the commercial potential for the technologies identified in the reports is directly tied to the cost of raw materials. In areas where there are cutbacks in pulp and paper capacity, there's a bigger demand for bio-product technologies as the surplus biomass is more plentiful.

The report concludes with a soft case for sustained or increased government support. FPAC's Cobden says further policy formulation is required before the industry makes any specific demands. But she adds that there are three general areas where public support is considered key to ensuring that the technologies are commercialized in ways that benefit the forestry industry and the sectors where bio-products are being targeted —ongoing technology development, technology testing at commercial scale and the formation of partnerships.

"We don't know all the answers yet but government can help to nurture the transformation of this sector," says Cobden, adding that industry is currently emerging from tough times as a result of the global economic downturn.

The report also assessed global markets for emerging bio-products and found potentially huge markets valued at $200 billion by 2015. Cobden says products for use in bio-energy are likely the first area for exploitation while bio-chemical applications are likely more long term.

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