Closed
Source verified August 10, 2026
Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects
De-risks first-in-kind forest-sector technologies
Receipt of requests is now closed
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Latest source updateLast Update: May 1, 2026Latest change: The IFIT Capital Investment Projects page now shows the program as closed, and the visible objectives section has been removed.View change
Latest source update
Last Update: May 1, 2026
Latest change: The IFIT Capital Investment Projects page now shows the program as closed, and the visible objectives section has been removed.
IFIT Capital Investment Projects moved to closed status
The IFIT Capital Investment Projects content now shows the funding opportunity as closed instead of open. The visible objectives content was also removed, which reduces detail on the project types and priorities shown on the page. No changes were visible to funding amounts, contact details, or the core application instructions in the supporting content reviewed.
Funding available
$ 10,000,000
Deadline
Closed
Location
Canada
Overview
The Investments in Forest Industry Transformation (IFIT) Capital Investment Project Stream provides non-repayable contributions of up to 50% of eligible project costs, to a maximum of $10 million, for for-profit companies located in Canada. Eligible projects include advanced wood-based building solutions, biomaterials and biochemicals, and pulp and paper modernization.
Receipt of requests is now closed
Get notified about updates to this grant.
At a glance
Funding available
Financing goals
- Develop strategic partnerships
- Increase production or service capacity
- Implement environmental initiatives
Eligible Funding
- Maximum amount : 10,000,000 $
- Up to 50% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Advanced wood-based building solutions
- Biomaterials and biochemicals
- Pulp and paper modernization
- Next-generation biofuels
- Advanced decarbonization
Documents Needed
- A project proposal form
- Mandatory support documents
- For proposals involving new facilities in Canada, documentation supporting ownership of the company’s existing facility and how the new facility will be acquired, constructed, leased or rented during project timelines
Official resources
Eligibility
Who is eligible?
- For-profit companies located in Canada
- Existing producers currently manufacturing forest products at an existing facility, such as pulp, paper, solid wood, or engineered wood producers
- New entrants entering the Canadian forest sector for the purpose of the proposed project
- Clusters, joint ventures and consortiums, if a for-profit company is designated as the lead applicant or lead funding recipient
- Foreign companies, if they have or propose a facility in Canada and the project is implemented in Canada
Eligible expenses
- In-kind contributions directly tied to the project
- Tangible in-kind expenses such as equipment contributed by a project partner
- Use of a partner’s laboratory as an in-kind contribution
Ineligible Costs and Activities
- Costs incurred prior to project submission or before a contribution agreement is signed by the applicant and Natural Resources Canada
- Costs associated with the production or export of softwood lumber
- Projects targeting wood pellet production for use as fuels under the Biomaterials and biochemicals category
- Traditional wood-based panel board projects under Next Generation Building Products, including oriented strand board, plywood and traditional decorative panels
Eligible geographic areas
- Canada
Selection criteria
- Rated criteria for Capital Investment projects include technical feasibility, innovation, partnerships, business plan, fibre supply, timing, value for investment, diversity and inclusion, and benefits to Canadians.
- Regional distribution across the country is an overall consideration for funding, although applications are not regionally weighted.
- Preference is given to projects with greater potential for replication across the sector.
- Preference is given to projects demonstrating a high proportion of total project costs leveraged from industry partners rather than other government funding, and secure or confirmed partnerships.
- Preference is given to projects that consume wood fibre from currently underutilized sources and will not divert fibre from existing higher-value uses.
How to apply
- Review the application form and applicant guidebook available through NRCan’s Funding Portal.
- Complete the full project proposal and supporting documentation.
- Submit the application through NRCan’s Funding Portal.
Processing and Agreement
- NRCan will acknowledge receipt of an application or proposal within five business days of receiving it.
- Applications are screened against mandatory criteria, and those that meet the baseline requirements are assessed against rated criteria.
- The evaluation establishes a short list of highly ranked projects, and short-listed applicants advance to the due diligence phase.
- Corporate approval is required at the due diligence phase for short-listed projects being considered for funding, and projects that successfully complete due diligence move to negotiating a contribution agreement.
- NRCan will issue an official written funding decision within 220 business days of the closing date of the call for proposals, and will issue payments within 30 calendar days of receiving invoices if all conditions in the contribution agreement are met.
Additional information
- An updated or enhanced proposal can be resubmitted if a previous IFIT proposal was declined.
- A company may apply for more than one capital investment project, but each project requires a unique project proposal form.
- There is no preference for small and medium enterprises over larger corporations and multinationals.
- A company’s previous interactions with the program do not determine eligibility for current funding opportunities.
Contacts
Frequently Asked Questions about the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects Program
What is the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects?
The Investments in Forest Industry Transformation (IFIT) Capital Investment Project Stream provides non-repayable contributions of up to 50% of eligible project costs, to a maximum of $10 million, for for-profit companies located in Canada. Eligible projects include advanced wood-based building solutions, biomaterials and biochemicals, and pulp and paper modernization.
How much funding can be received?
Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects Funds up to 50% of admissible expenses, capped at $10,000,000 per project.
Who is eligible for the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects program?
To be eligible for the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects program, you must:
The applicant must be a for-profit company located in Canada, or a foreign company with or proposing a facility in Canada if the project is implemented in Canada.
The applicant must be an existing forest product producer or a new entrant entering the forest sector specifically to execute the proposed project.
The project must fall within a targeted innovation category and be an innovative demonstration- or commercial-scale project integrated within the forest sector.
What expenses are eligible under Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects?
Advanced wood-based building solutions
Biomaterials and biochemicals
Pulp and paper modernization
Next-generation biofuels
Advanced decarbonization
Who can I contact for more information about the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects?
You can contact Natural Resources Canada (NRCan) by email at ifit-itif@nrcan-rncan.gc.ca.
Where is the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects available?
The Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects program is available across Canada.
Is the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects a grant, loan, or tax credit?
Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects is a Grant and Funding