1.0 Overview

The Ontario Forest Biomass Program (the program) supports the objectives set out in Sustainable Growth: Ontario’s Forest Sector Strategy (the strategy) and the provincial Forest Biomass Action Plan (FBAP). The program supports initiatives  that secure and increase long-term wood utilization across the province, with a focus on underutilized species and forest biomass.

This program is part of Ontario’s commitment to the development of new uses of wood and forest biomass to deliver economic benefits to Ontarians while helping to reduce emissions and address climate change.

The program has 4 streams that will position Ontario as a leader in the growing circular and green economy.

  • Indigenous bioeconomy partnerships stream: Increase Indigenous participation in forest biomass opportunities and benefit from bioeconomy development.
  • Exploring biomass pathways stream: Improve public and private sector understanding of the technical, financial, scientific and operational considerations for use of forest biomass.
  • Innovative bioproduct manufacturing stream: Deploy innovative bioproducts and facilitate increased use of forest biomass as a feedstock in manufacturing, infrastructure, energy services and resource extraction sectors.
  • Modernization stream: Support forest sector transformation, competitiveness, and participation in emerging bioeconomy opportunities through use of forest biomass.

While each stream is distinct, all projects selected for funding will:

  • contribute to advancing partnerships, innovation, diversification and modernization of Ontario’s forest sector
  • encourage growth of the forest bioeconomy through new business opportunities and investments in the use of biomass, forest bioproducts and related technologies

2.0 Objectives

The Forest Biomass Program is a key component to implementing the FBAP, which will unlock the enormous potential of Ontario’s forest biomass, drive further prosperity in the forest industry, and support job growth, investment, innovation and sustainability.

The program aims to:

  • expand the volume of wood harvested from Crown forests for use in traditional and innovative products and applications
  • support the sustainability of forest product operations and the contribution the forest sector makes to regional economies, including employment and revenues generated by forest product manufacturing facilities
  • work with municipalities, industry, Indigenous communities and stakeholders to collaboratively identify and invest in viable future uses for wood

3.0 Eligibility

3.1 Application process

We evaluate project applications through 2 intake periods per year. You may apply to either intake period at any time before the deadline.

The deadlines to apply are:

  • May 31, 2024, at 11:59 p.m. EST
  • November 30, 2024, at 11:59 p.m. EST
  • May 31, 2025, at 11:59 p.m. EST
  • November 30, 2025, at 11:59 p.m. EST
  • May 31, 2026, at 11:59 p.m. EST
  • November 30, 2026, at 11:59 p.m. EST

To apply, submit a completed application form and supporting documentation to forestbiomass@ontario.ca.

We assess applications twice a year after each intake period closes.

We will review all applications received for completeness and eligibility before we consider them accepted for review and evaluation.

Applications will be evaluated using standardized criteria outlined in section 5.0 Project Evaluation Process.

We encourage you to contact us to discuss your project prior to submitting an application.

3.2 Eligible applicants and projects

The entities eligible to be considered for funding are businesses, municipalities, Indigenous communities and not-for-profit organizations that have an Ontario-based project that will expand the use of forest biomass and enhance the forest biomass supply chain within Ontario.

The forest biomass supply chain is the sequence of activities required to supply forest biomass feedstocks to users including harvesting and collection, pre-treatment, upgrading and handling, and for other uses (such as for decarbonization or the production of bioproducts).

Indigenous bioeconomy partnerships (IBP) stream

Growing Ontario’s forest bioeconomy will result in economic, social, and environmental benefits for Indigenous communities. The IBP stream supports Indigenous businesses and communities to become more active participants in the forest sector and to lead the development of a forest bioeconomy.

Eligible IBP stream applicants are Indigenous communities, Indigenous not-for-profit and for-profit organizations and businesses (51% or greater control and ownership by an Indigenous community or communities, organization or person(s)).

Applicants must demonstrate how the project will have a positive impact on the development of Ontario’s bioeconomy in alignment with the objectives of the strategy and FBAP. Examples of eligible activities include:

  • studies, plans, evaluations, assessments, or related activities to identify or develop economic or business opportunities utilizing forest biomass
  • strategic, business, human resources, marketing and financial planning or community economic development planning
  • development or expansion of Indigenous joint ventures, partnerships or businesses
  • capacity development and training
  • development of tools, technology, products, services and systems
  • engineering design, environmental planning and permitting or other project design activities
  • site development, facility construction and commissioning, and business start-up and expansion of operations

Exploring biomass pathways (EBP) stream

The use of modern forest biomass technologies and bioproducts is new to many sectors. The EBP stream has been established to support investigatory projects that will inform understanding about the feasibility, capacity, economics, and environmental impacts of forest biomass technologies. The EBP stream will improve accessibility of resources to promising initial projects which could result in innovative and transformative uses of forest biomass following the outcome of feasibility, technical and engineering investigations.

Eligible EBP stream applicants are for-profit organizations, not-for-profit organizations, and businesses which are in earlier phases of exploring the potential use of forest biomass in Ontario.

Applicants must demonstrate how the project will have a positive impact on the development of Ontario’s bioeconomy in alignment with the objectives of the strategy and FBAP. Examples of eligible projects under this stream include:

  • engineering and feasibility studies
  • pre-commercial and commercial scientific trials
  • operational and technical requirement assessments, for projects that use forest biomass as a primary feedstock

Innovative bioproduct manufacturing (IBM) stream

The IBM stream provides support for the development and commercialization of new and/or innovative technology that will increase the use of forest biomass in Ontario. This stream will support projects at minimum Technology Readiness Level 5 (Demonstration). Definitions of Technology Readiness can be found in Appendix B.

The IBM stream will diversify the forest sector by supporting alternative uses of forest biomass in a new and/or innovative initiative, which could include, for example, the reduction of greenhouse gas emissions associated with the production of another product (such as steel, minerals, cement) or commercializing other novel uses of biomass.

Eligible IBM stream applicants are:

  • for-profit companies operating in Ontario that produce bioproducts in an existing facility using forest biomass, or will adopt the use of forest biomass in their bioproducts production
  • Canadian not-for-profit organizations that can help to facilitate investments in Ontario’s forest bioeconomy

Eligible IBM stream projects will advance the deployment of innovative bioproducts and forest biomass technologies through capital investment projects in Ontario that:

  • increase the regional use of forest biomass through adoption of a new or innovative technology or process (consistent with the 5 to 7 year outlook described in the FBAP)
  • provide realistic prospect for near-term technology deployment and commercialization of a new or innovative technology or process using forest biomass
  • integrate forest biomass into new sectors of the economy through pre-processing of material to create usable feedstocks for manufacturing, infrastructure, or resource extraction including, but not limited to, the ability to produce products to assist with the decarbonization of industrial processes and future opportunities in a net-zero economy

Modernization (MOD) stream

The MOD stream will help position Ontario’s forest sector as a leader in the emerging bioeconomy by supporting existing forest product manufacturing facilities to scale-up the use of woody biomass and/or implement strategic initiatives to modernize and enhance competitiveness of forest product supply chains.

Eligible MOD stream applicants must be an existing wood products manufacturing facility operating in Ontario, that plays a key role in regional harvesting and/or supply chains, and which currently consume significant quantities of forest biomass (mill residues and/or forest biofibre) as a primary feedstock.

Consideration will be given to eligible MOD stream projects that demonstrate integration of technologies or processes that result in operational efficiencies, decreased energy usage and/or decreased greenhouse gas emissions, productivity improvements or new product development.

MOD stream applicants will be required to provide a modernization plan that demonstrates how the project will result in supply chain and process-based improvements that maintain or increase the use of forest biomass and modernize key aspects of facility operations.

3.2.1 Projects with significant impact

At the sole discretion of the province, exceptions to certain eligibility requirements may be considered for projects with significant impact to forest biomass usage and supply chains that are strategically important to Ontario’s forest sector.

3.3 Eligible project costs

For all program streams, eligible project costs must be incremental to the applicant and directly related to the project. Eligible project costs include, but are not limited to:

  • professional, technical and legal services
  • salaries, wages and benefits, excluding post-employment benefits such as severance
  • planning and design costs
  • training and skills development
  • transportation costs
  • capital costs, including purchase and installation of equipment and machinery
  • rolling stock directly related to and necessary for the project, such as harvesting equipment, tractors, biomass processing equipment (does not include vehicles such as trucks, vans, cars)
  • material costs
  • permits or approvals
  • installation and commissioning costs
  • overhead costs directly related to the project, not to exceed 15% of total contribution
  • travel, including accommodation, meals and allowances (based on approved rates)
  • in-kind contribution of staff time by the applying organization’s employees (including permanent and contract employees)
    • note: the value of the total in-kind contributions for staff salaries or other remuneration cannot exceed 10% of the total eligible costs

Additionally, there are eligible project costs specific to each program stream. They include, but are not limited to the following.

Indigenous bioeconomy partnerships and exploring biomass pathways projects

  • Administrative costs that are directly linked to and have been incurred for the study, such as:
    • communication costs (such as long-distance calls or faxes)
    • printing or photocopying by outside suppliers
    • acquisition of documents used exclusively for the study
    • document translation
    • costs related to meetings and public gatherings that communicate the study to the public and that collect feedback, such as facility rental, A/V equipment, etc.
  • Land leases for demonstration plants, not to exceed three years.
  • Research and development costs including third party verification technology readiness level, certification and standards testing.
  • Honoraria, ceremonial and hospitality costs for community engagement events and project meetings.

Innovative bioproduct manufacturing projects

  • New facility or facility modifications and upgrades directly attributable to and necessary for the project.
  • Research and development costs including third party verification of technology readiness level, certification and standards testing.

Modernization projects

  • New facility or facility modifications and upgrades directly attributable to and necessary for the project.

3.4 Ineligible project costs

Ineligible costs under the program include, but are not limited to:

  • land purchases
  • working capital
  • labour costs for any person that owns 10% or more of the applicant business or organization
  • office equipment and furnishings
  • vehicle lease or purchase, such as trucks or cars
  • restructuring
  • mergers and acquisitions (such as purchase of an existing business)

Determination of eligibility of project costs is at the sole discretion of the province.

4.0 Funding

4.1 Funding types and amounts available under the program

Forest Biomass Program funding is in the form of a conditional contribution. Funding is provided on a reimbursement basis over the life of the project, following:

  • receipt of documentation showing achievement of project milestones
  • proof of eligible costs incurred and paid for
  • other required documentation described in the application form

In limited circumstances, funding advances may be considered at the discretion of the province. 

Maximum funding amounts

Indigenous bioeconomy partnerships projects

  • Funding up to 80% of total eligible project costs, to a maximum of $250,000 per project.

Exploring biomass pathways projects

Maximum funding amounts may vary depending on the nature of the project.

  • For-profit applications that demonstrate substantial involvement/benefit to Indigenous partners:
    • Up to 80% of total eligible project costs to a maximum of $130,000 per project
  • For-profit applications that demonstrate substantial involvement/benefit from academic, non-profit, and/or municipal and regional government partners:
    • up to 70% of total eligible project costs to a maximum of $120,000 per project
  • All other projects:
    • up to 50% of total eligible project costs to a maximum of $100,000 per project 

Innovative bioproduct manufacturing projects

  • Funding up to 50% of total eligible project costs to a maximum of $5 million per project.

Modernization projects

  • Funding up to 35% of total eligible project costs to a maximum of $10 million per project.

4.2 Stacking with other government funding

Indigenous bioeconomy partnerships projects

  • Applicants may stack funding from other municipal, provincial and federal government programs to 100% of the total eligible project costs.

Exploring biomass pathways projects

Stacking limits vary depending on the nature of the project.

  • Applications that demonstrate substantial involvement or benefit from Indigenous partners may stack funding from other municipal, provincial and federal government programs to 80% of the total eligible project costs.
  • Applications that demonstrate substantial involvement or benefit from academic, non-profit, or municipal and regional government partners may stack funding from other municipal, provincial and federal government programs to 70% of the total eligible project costs. 
  • Non-profit or local or regional government applicants may stack funding from other municipal, provincial and federal government programs to 100% of the total eligible project costs.
  • All other applicants may stack funding from other municipal, provincial and federal government programs to 70% of the total eligible project costs.

Innovative bioproduct manufacturing projects

  • Applicants may stack funding from other municipal and federal government programs to 75% of the total eligible project costs. You cannot stack with other provincial funding programs for the same project. 

Modernization projects

  • Applicants may stack funding from other municipal and federal government programs to 75% of the total eligible project costs. You cannot stack with other provincial funding programs for the same project. 

5.0 Evaluation process

5.1 Overview of project evaluation process

The program will evaluate applications through semi-annual in-take periods.

All project applications will be evaluated using the following process.

Application intake

  • We review applications for completeness and eligibility before being considered accepted for review and evaluation.
  • We work with applicants to address any application deficiencies.
  • We notify applicants when applications have been deemed complete and accepted for review and evaluation.

Project evaluation

Accepted applications will be evaluated against a number of factors including, but not limited to:

  • How well the project aligns with the objectives and criteria of the program and relevant program stream.
  • The strength of the applicant’s business plan, including financial, technical and operational capacity, project risk assessment and project outcomes.
  • The project’s impact to:
    • the applicant’s own operations within Ontario
    • regional economies
    • Ontario’s broader forest bioeconomy (for example benefits of the project beyond that of the applicant)
    • long-term wood utilization, with a focus on underutilized species and forest biomass
  • The project’s impact as compared against other projects seeking funding under the same program stream.

Apply to the Indigenous bioeconomy partnerships or Exploring biomass pathways streams.

Apply to the Innovative bioproduct manufacturing or Modernization streams.

5.2 Evaluation criteria

The evaluation criteria of projects are based on assessment of each of the following:

Project outcomes

  • How well the project aligns with and supports the objectives of the program stream.
  • The outcomes to be achieved through implementation of the project.

Sector and cluster priorities and impacts

  • The proposal aligns with sector and cluster priorities and is of strategic importance to Ontario’s broader forest bioeconomy. Are there benefits from this project that provide positive impacts and strengthen the competitive advantage of Ontario’s forest biomass supply chain? Do the positive impacts of this project extend beyond that of the applicant’s operations to the broader forest bioeconomy in Ontario?

Regional impact and net economic impact

  • The project positively impacts regional economies (directly and/or indirectly).
  • The project secures and increases long-term utilization of underutilized forest resources across the region.
  • The project will generate social and/or economic benefits beyond the immediate benefits to the applicant.
  • The project reduces Ontario’s carbon emissions.
  • We give priority to projects that will have measurable impact addressing regional disparities (for example, improving economic conditions of communities/regions that are below the provincial average).

Incrementality

  • Critical aspects of the proposed investment (such as scope, scale, quantum and timelines) in the project will not happen without government support.

5.3 Due diligence

All projects will undergo a review of the business case for the project to assess whether:

  • the applicant has demonstrated it has the financial, technical, and operational capacity to successfully complete the project
  • the project outcomes are reasonable
  • the applicant has identified, assessed and mitigated all major risks

In addition to this, MOD stream projects will undergo an independent third-party financial and technical due diligence assessment. External advisors engaged by Ontario will be bound by confidentiality agreements.

For the IBM stream projects, engagement of independent third-party due diligence will be based on the complexity or unique factors of a project, as determined at the sole discretion of the province.

6.0 Funding agreements

Terms and conditions of funding for each approved project will be defined within a Conditional Contribution Agreement that will outline eligible costs, project milestones, activity completion dates, performance commitments, reporting requirements and other terms and conditions of funding.

Additional information

Applicants should be aware that the ministry is bound by the Freedom of Information and Protection of Privacy Act, R.S.O 1990, c. F. 31 (FIPPA), as amended from time to time, and that any information provided to the ministry in connection with an application may be subject to disclosure in accordance with FIPPA.

Approved projects may be the subject of public announcements.

7.0 Discretionary program

This is a discretionary, non-entitlement, competitive program with a limited budget. The ministry does not guarantee funding to all applicants, nor does the ministry guarantee that the total amount requested by successful applicants will be granted. The ministry reserves the right, in its sole discretion, to fund or not fund any particular project for which an application is submitted. The ministry also reserves the right to impose whatever conditions it deems advisable in the acceptance of an application and in the funding agreement.

Applicants should not take any action, or incur any costs related to the program, that is predicated on receiving funding from the ministry until an application is approved and all parties have entered into a funding agreement acceptable to the ministry. The ministry is not responsible for paying any costs incurred by an applicant should the application not be approved or if the applicant fails to enter into a funding agreement acceptable to the ministry.

For clarity, until the execution of an agreement between a successful applicant and the ministry, no contractual relationship exists between the province of Ontario and the program’s applicants, and the province is not subject to any contractual obligation in respect of the program.

Appendix A: Definitions

Forest biomass
Refers to all biological material (living and dead) in forested landscapes. Consistent with Ontario’s sustainable forest management framework, this program focuses on 2 types of forest biomass that can be converted into bioproducts through new and existing industrial processes.
Forest biofibre
Composed of forest resources (trees or above-ground tree parts) that are not used for conventional forest products and that are available from Ontario’s provincial forests under an approved forest management plan or sourced from private woodlots and other forested lands.
Mill by-products
Composed of residues generated from forest product manufacturing (such as bark, shavings and sawdust).
Full time equivalent jobs (FTEs):
A measure of employment that defines full time employees as those working a minimum of 1,500 hours of paid work per year. One full-time employee cannot count for more than one FTE, regardless of how many hours they may work in excess of the minimum 1,500 hours. As part of measuring employment levels, part-time positions can be added together and converted to an equivalent amount of full-time equivalent jobs, provided the sum of the part-time hours is at least 1,500 paid hours per year per FTE. For example: two part-time employees each working 750 hours per year would count as one FTE, since their hours add up to at least 1,500 paid work hours. This definition includes contract or agency employees; however, temporary project-implementation jobs should not be included. For example: those jobs needed solely to implement a project which will not be maintained once the project is complete (such as building construction or contract workers installing machinery or equipment for the project) are considered temporary and should not be included in measurement of FTEs.

Appendix B: Technology readiness level

Technology Readiness Level (TRL): describe the different stages of pre-commercial development.

TRL 1 – 2 Basic technology research

TRL 1 — Basic principles observed and reported

Lowest level of technology readiness. Scientific research begins to be translated into applied research and development. Activities might include paper studies of a technology's basic properties.

TRL 2 — Technology concept and/or application formulated

Invention begins. Once basic principles are observed, practical applications can be invented. Activities are limited to analytic studies. Applications are speculative, and there may be no proof or detailed analysis to support the assumptions.

TRL 3 – 4 Technology validation

TRL 3 — Analytical and experimental critical function and/or characteristic proof of concept

Research and development is initiated. This includes analytical studies and/or laboratory studies to physically validate the analytical predictions of separate elements of the technology. Activities might include components that are not yet integrated or representative.

TRL 4 — Product and/or process validation in laboratory environment

Basic technological products and/or processes are integrated and tested to establish that they will work. Activities include integration of "ad hoc" hardware in the laboratory.

TRL 5 – 7 Demonstration including scale up and piloting

TRL 5 — Product and/or process validation in relevant or simulated environment

Reliability of product and/or process innovation increases significantly. The basic products and/or processes are integrated so they can be tested in a simulated environment.

TRL 6 — Product and/or process prototype demonstration in a relevant or simulated environment

A model or prototype that represents a near desired configuration is tested in a relevant environment. Represents a major step up in a technology's demonstrated readiness. Examples include testing a prototype in a simulated operational environment.

TRL 7 — Product and/or process prototype demonstration in an appropriate operational environment

Prototype near or at planned operational level and requires demonstration of an actual prototype in an operational environment (e.g. in a vehicle). Activities include prototype field testing.

TRL 8 – 9 Technology deployment

TRL 8 — Actual product and/or process completed and qualified through tests and demonstrations

Technology has been proven to work in its final form and under expected conditions. Activities include developmental testing and evaluation of whether it will meet operational requirements.

TRL 9 — Actual product and/or process proven successful through successful deployment in an operational setting

Actual application of the product and/or process innovation in its final form or function and under real-life conditions, such as those encountered in operational tests and evaluations. Activities include using the innovation under operational conditions.