Forest Sector Investment and Innovation Program: Round 24

Overview of the Forest Sector Investment and Innovation Program: Round 24 program:

The objective of Forest Sector Investment and Innovation Program (FSIIP) is to encourage businesses to make investments by providing financial support for projects that will improve productivity, increase innovation, support market expansion, strengthen regional economies and supply chains, and positively impact Ontario’s broader forest sector. FSIIP will assist Ontario forestry companies to develop and implement innovative technology and encourage innovation in products, services and processes to improve the competitiveness of Ontario’s forest industry. FSIIP will be a key tool in building Ontario’s productive and innovative capacity to create jobs of today and tomorrow by encouraging the development of products, services and processes for diverse markets, and the integration of them in the regional and global supply chain. There are two streams — business projects stream and collaboration projects stream. Business projects will support capital investment projects put forward by for-profit forestry companies that meet the objectives of the program. Collaboration projects will support projects brought forward by project partners that may include for-profit forestry companies, industry associations, forestry-related not-for-profits and/or academia (including at least one Ontario-based for-profit forestry and wood products company) that will have a transformative impact on Ontario’s forest sector. While these streams are distinctive and specialized, the application of consistent policy filters ensures that provincial business support funding directly supports Ontario’s economic development priorities.

Benefits of the Forest Sector Investment and Innovation Program: Round 24 program:

• The Forest Sector Investment and Innovation Program (FSIIP) is a central component of Ontarios Forest Sector Strategy, designed to create a business environment that encourages growth, promotes innovation, and helps the industry adapt to an evolving economic landscape. FSIIP focuses on projects that not only benefit the applicant but also contribute positively to the regional economy where the project is located, as well as Ontarios forest sector as a whole.
• The program emphasizes productivity by supporting a highly skilled workforce, increasing industrial efficiency, advancing technological development, and expanding product innovation and variety. Applicants are encouraged to adopt leading-edge technologies to enhance their operational capabilities.
• In terms of innovation, FSIIP seeks to build research and development as well as commercialization capacities, foster collaboration between partners, and embed innovation into the overall business climate. The program aims to drive the development of innovative products, technologies, and production processes.
• FSIIP also prioritizes market expansion, helping companies strengthen their competitiveness in global markets, gain greater access to domestic and international markets, and foster trade across provincial and international borders.
• The program evaluates the regional impact of projects, giving greater weight to initiatives that positively affect communities and regions experiencing economic disparities. Projects are expected to contribute to the economic well-being of the regions in which companies operate.
• Finally, sectoral importance is a key consideration. Projects should have a positive impact on Ontarios broader forest sector and address specific sectoral needs and priorities, supporting the long-term growth and sustainability of the industry.

Eligibility criteria of the Forest Sector Investment and Innovation Program: Round 24 program:

• The program is open to for-profit businesses, municipalities, Indigenous communities, and not-for-profit organizations involved in Ontarios forestry sector. Newly formed businesses or spinouts may be considered if they demonstrate financial capacity and relevant operational experience.
• Eligible projects must focus on innovation, productivity improvements, business expansion, or the adoption of sustainable practices. This can include new technology adoption, facility upgrades, process improvements, or product development. Collaboration projects must involve at least three partners, including one Ontario-based for-profit forest sector business, with one partner coordinating the application.
• Projects must be located in Ontario, with priority given to initiatives benefiting rural and northern communities where the forestry sector is a key part of the local economy.
• Applicants must demonstrate the financial ability to manage and complete the project within the proposed timeline and budget. Minimum eligible project costs are $3 million for both business and collaboration streams.
• Harvesting and hauling projects are not eligible. Projects are expected to provide positive impacts on both the regional economy and Ontarios broader forest sector.