Open
Forest Sector Investment and Innovation Program — Collaboration projects
Last Update: March 24, 2026
Ontario, Canada
Funding for collaborative forestry projects in Ontario
Grant and Funding
Overview
The Forest Sector Investment and Innovation Program (FSIIP) provides collaboration projects with funding of up to $3 million (30% of eligible costs) to develop, diversify and transform Ontario's forest sector through technology, process and product innovation. Eligible projects must involve at least three partners—including forest sector businesses, research organizations, industry associations, or academia—with minimum eligible costs of $3 million.
At a glance
Funding available
Financing goals
- Develop a new product
Eligible Funding
- Maximum amount : 3,000,000 $
- Minimum amount : 3,000,000 $
- Up to 30% of project cost
Timeline
- Open Date : March 24, 2026
Eligible candidates
Eligible Industries
- Agriculture, forestry, fishing and hunting
Location
- Ontario
Legal structures
- Non-profit
- Public or Parapublic institution
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Startups
Non-profit candidates
Sector of operation
- Higher Education
- Research
- Economic, Social and Community Development
- Business Associations
Target groups
- Rural / Remote communities
- Business owners / entrepreneurs
- Nonprofits / charities
- Academia / students
Revenue structures
- All structures
Scope
- Provincial
- National
- International
Activities funded
The Forest Sector Investment and Innovation Program — Collaboration projects stream supports transformative initiatives that enhance innovation and market capability within Ontario’s forest and wood products sector. Eligible projects must involve collaboration and active participation from multiple partners and focus on innovative advancements.
- Development and implementation of first-in-kind innovations or adaptation of existing innovations.
- Process innovation and modernization that applies broadly across the sector.
- New product development that offers supply chain benefits and crosses into related sectors like wood building construction.
Examples of admissible projects:
$ 2,100,000
Create a new line of eco-friendly forest-derived packaging products
$ 2,400,000
Establish a forest sector innovation hub for research and development
$ 1,050,000
Implement a digital platform for sustainable forest management
$ 1,350,000
Launch an online marketplace for sustainably sourced forest products
$ 1,800,000
Enhance wood construction technology and practices
$ 2,400,000
Develop a cutting-edge biomass conversion facility to improve energy efficiency
Eligibility
Eligibility for this grant is determined by specific requirements related to the type of organization and collaboration involved in the project.
- Applicants must include at least one Ontario-based for-profit forestry and wood products company.
- Eligible entities include Ontario forest and wood products corporations, extra-provincial forest and wood products corporations, federal forest and wood products corporations, and foreign forest and wood products corporations with a Canadian/Ontario subsidiary.
- Forestry-related not-for-profit corporations are eligible.
- Ontario-based post-secondary education institutions can apply.
- Collaboration projects should have a minimum eligible project costs threshold of $3 million.
- Projects must involve at least three project partners with active involvement in Ontario's forest industry.
- Eligible project partners include not-for-profit industry associations and educational institutions associated with Ontario’s forest industry.
Who is eligible?
The Forest Sector Investment and Innovation Program's collaboration projects stream is open to a wide range of entities that are actively involved in Ontario’s forestry industry or related sectors and can significantly contribute to industry-leading innovation.
- Ontario forest and wood products corporations.
- Extra-provincial forest and wood products corporations.
- Federal forest and wood products corporations.
- Foreign forest and wood products corporations with an incorporated Canadian/Ontario subsidiary.
- Forestry-related not-for-profit corporations such as research organizations or industry associations.
- Ontario-based post-secondary education institutions.
- Eligible start-ups are considered on a case-by-case basis.
Who is not eligible
While the grant outlines detailed eligibility, specific restrictions on certain industries or company types not eligible for this grant are not explicitly mentioned. The guidelines primarily focus on what is eligible rather than what is not.
Eligible expenses
This grant supports collaboration projects that have a transformative impact on Ontario’s forest and wood products sector. Eligible activities focus on process and product innovation, involving collaboration among multiple partners.
- Industry-leading process innovation or modernization with broad application.
- New product development with benefits up and down the supply chain.
- Product innovation that provides broad benefits across Ontario’s forest sector and other related sectors such as wood building construction and design.
Selection criteria
The evaluation and selection of projects for the Forest Sector Investment and Innovation Program (FSIIP) are based on specific criteria ensuring that projects align with the program's objectives, including strengthening Ontario's competitive advantage, generating regional impact, and enhancing sectoral importance.
- Project outcomes: The proposal supports productivity, innovation, and/or market expansion, contributing to Ontario’s competitive advantage.
- Number of new and/or retained jobs: Evaluation based on the number of new and/or retained jobs resulting from the project.
- Sector/cluster priorities and impacts: Alignment with sector and cluster priorities, strategic importance, and benefits extending beyond the applicant to Ontario’s broader forest sector.
- Regional impact/net economic impact: Positive direct or indirect impacts on regional economies, with emphasis on addressing regional disparities.
- Incrementality: Project aspects that would not happen without government support and evidence of a net positive return on investment to the province.
- Due diligence: Comprehensive identification, assessment, and mitigation of financial, technical, and public risks associated with the project.
- Compliance assessment: Satisfaction of compliance requirements regarding health and safety, environmental, accessibility, tax compliance, and municipal planning.
How to apply
1
Register with Transfer Payments Ontario (TPON)
- Visit the TPON website to create an account.
- Provide all necessary registration details to gain access to the portal.
2
Complete Stage I Eligibility Checklist and Application Form
- Log in to your TPON account.
- Fill out the Stage I eligibility checklist.
- Complete the Stage I application form, ensuring it aligns with the program’s objectives.
3
Stage I Submission
- Review the eligibility checklist and application form for completeness.
- Submit the Stage I application through the TPON portal.
- Await notification of the decision to advance to Stage II within 10 business days.
4
Complete Stage II Application
- If approved, prepare the detailed Stage II application and gather all supporting documents.
- Ensure all documentation follows the evaluation criteria and addresses all program objectives.
- Collaborate with program staff if necessary for guidance on documentation requirements.
5
Stage II Submission
- Submit the full Stage II application and supporting documentation within 15 business days of approval notification.
- Ensure all required information is complete and accurate to avoid deferment.
6
Await Stage II Evaluation and Funding Decision
- Allow 65 business days post-submission for the application evaluation and funding decision.
- If selected, proceed to negotiate and finalize the funding agreement with the province.
Additional information
Here are additional relevant details for this grant:
- The program operates on a competitive rounds-based system, limiting the number of grants allocated per year.
- Stacking of funding is permitted, but total government funding cannot exceed 75% of eligible project costs.
- Funding disbursements are typically made in arrears unless otherwise approved.
- There is a clawback mechanism for unmet commitments related to project investment, jobs, and payroll.
- Recipients must agree to maintain their operational footprint in Ontario, with non-compliance considered a default event.
- Approved projects will undergo public announcements.
- Ministry staff will assist applicants but this does not guarantee application acceptance.
- The program is bound by certain confidentiality and public reporting obligations in compliance with privacy legislation.
- Disbursements are typically made in annual installments, subject to meeting performance milestones.
- Projects must report annually on mandatory and selected performance measures, including wood utilization.
Documents and links
Contacts
FSIIP@ontario.ca
1-844-573-9017
