Forest Biomass Program — Modernization stream

The Forest Biomass Program under the Modernization stream offers funding to support the transformation of Ontario’s forest sector and participation in emerging bioeconomy opportunities. Funding is structured as conditional contributions, tailored to enhance operational efficiencies and support strategic initiatives.

• Funding covers up to 35% of total eligible project costs with a maximum of $10 million per project.
• All funding is on a reimbursement basis following achievement of project milestones and proof of eligible expenses.
• In some cases, funding advances may be considered at the province’s discretion.
• Applicants may stack additional municipal and federal funding to cover up to 75% of total eligible costs, excluding other provincial funding for the same project.

Eligibility for the Forest Biomass Program's Modernization stream is defined by specific criteria that the applying company or entity must meet.

• The applicant must be an existing wood products manufacturing facility operating in Ontario.
• The facility should play a key role in regional harvesting and/or supply chains.
• The facility must currently consume significant quantities of forest biomass, such as mill residues and/or forest biofibre, as a primary feedstock.
• Eligible applicants can include businesses, municipalities, Indigenous communities, and not-for-profit organizations with Ontario-based projects aimed at advancing the use of forest biomass.

Who is eligible?

The Forest Biomass Program Modernization stream is open to specific organizations within the forest sector that contribute significantly to the restructuring and advancement of the bioeconomy in Ontario.

• Existing wood products manufacturing facilities operating in Ontario.
• Businesses that play a crucial role in regional harvesting and/or supply chains.
• Organizations currently utilizing significant quantities of forest biomass as primary feedstock.
• Projects that offer integration of technologies/processes for operational efficiencies, reduced energy usage, reduced greenhouse gases, productivity improvements, or new product development.
• Entities such as businesses, municipalities, Indigenous communities, and not-for-profit organizations focusing on expanding forest biomass usage and enhancing the supply chain in Ontario.

Eligible expenses

The grant covers specific expenses directly related to the implementation and success of the project.

• 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 and biomass processing equipment.
• 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), not to exceed 10% of the total eligible costs.
• New facility or facility modifications and upgrades directly attributable to and necessary for the project.

Eligible geographic areas

This grant is available to entities with Ontario-based projects, emphasizing their role in expanding and enhancing the forest biomass supply chain within the province.

• Entities with Ontario-based forest biomass projects.

The evaluation and selection of projects for the Forest Biomass Program's Modernization stream are based on specific criteria to ensure projects align with the program's strategic objectives and provide substantial benefits to Ontario’s forest bioeconomy.

• How well the project aligns with and supports the objectives of the Modernization stream.
• The strength of the applicant’s business plan, including financial, technical and operational capacity, project risk assessment and outcomes.
• The project's impact on the applicant’s operations and broader regional economies, including measurable increases in forest biomass utilization.
• The alignment with sector and cluster priorities, and the positive impacts on Ontario’s forest biomass supply chain and broader bioeconomy.
• The potential to reduce Ontario’s carbon emissions and address regional economic disparities.
• The incrementality of the project, ensuring critical aspects will not occur without government support.

Here are additional relevant details for this grant:

• Funding is provided on a reimbursement basis after documentation showing achievement of project milestones and proof of eligible costs is submitted.
• Advance funding may be available in limited circumstances, at the discretion of the province.
• Funding up to 35% of total eligible project costs is available, with a cap of $10 million per project under the Modernization stream.
• The program allows stacking with municipal and federal government programs up to 75% of total eligible project costs but not with other provincial programs.
• All projects must undergo a due diligence review of the business case, and Modernization stream projects require third-party assessments for financial and technical validation.
• Applications are subject to disclosure under the Freedom of Information and Protection of Privacy Act (FIPPA).
• Approved projects may be publicly announced.
• The ministry reserves the right not to award funding and to impose conditions on accepted applications and funding agreements.
• No contractual relationship exists until a funding agreement is executed, and the ministry is not liable for any costs incurred by applicants in expectation of funding.