How much funding can be received?

Funds up to 50% of admissible expenses.

What is the deadline to apply?

The program is accepting continuous intake

Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects

Q: What are Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects's eligibility criterias?

Eligible recipients must be for-profit companies located in Canada. For-profit companies must either produce forest products in an existing facility or be new entrants in the forest sector for the project purpose. Joint ventures, clusters, and consortiums are eligible, provided a for-profit company acts as the lead applicant.

Last Update: July 22, 2025

Ottawa, ON

Capital for forest sector innovations

Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects at a glance

Eligible Funding

Min. $1,000,000
Up to 50% of project cost

Timeline

Closing date : June 30, 2024

Financing Type

Grant and Funding

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing

Grant Providers

Natural Resources Canada (NRCan)
Government of Canada

Status

Closed

Overview of the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects program

Get funding of up to $1 million (small businesses) or $20 million (larger businesses) to cover the project costs of diversifying into new product streams or implementing innovative process improvements.

Financing terms and conditions

This grant provides comprehensive financial support to eligible projects, helping facilitate transformative advancements in the forest sector. The funding modalities are designed to ensure substantial financial contributions while maintaining accountability and effective resource utilization.

The IFIT program offers non-repayable contributions covering up to 50% of the total cost of a capital project.
A maximum contribution of $10 million is available for any single project.
Payment installations may be made quarterly, contingent upon the approval of financial reports signed by the recipient’s authorized officer.
Eligible expenditures are recognized only if incurred on or after the signing of the contribution agreement.
Advance payments can be arranged based on the recipient's assessed needs, risk levels, and cash-flow requirements.
Retroactive reimbursement for eligible expenditures may be considered for agreements signed within the first fiscal year of the program, but limited to 50% of NRCan's contribution.
A financial holdback may be implemented to ensure all conditions of the contribution agreement are satisfied before final disbursement.
Total government assistance from all levels will not exceed 100% of the total eligible project cost, with any excess subject to recovery.

Eligible projects & activities

The Investments in Forest Industry Transformation (IFIT) grant is designed to support transformative projects in the forest sector that focus on adopting and integrating innovative technologies. The eligible projects aim to enhance environmental performance and secure the sector's competitiveness.

Capital investment projects that facilitate diversification of forest products and responsible resource use.
Installation of first-in-kind technologies in the forest industry.
Early adoption of technological innovations requiring additional de-risking.
Projects focusing on advanced biomaterials and biochemicals derived from wood components.
Pulp and paper diversification initiatives leading to new market products.
Development of next generation wood-based building products.
Advanced biofuels projects utilizing wood fibre as a source.
Initiatives aimed at process efficiency and decarbonization within the forest sector.
Projects improving the utilization of underused wood fibre sources.

Examples of admissible projects:

$ 2,000,000

Feasibility study for converting a sawmill's bark waste into bio-char

$ 3,000,000

Study on the economic viability of producing nanocellulose from forest waste

$ 10,000,000

Capital investment in a new facility to produce bio-composites from forest residue

$ 10,000,000

Implementation of a bio-refinery process to convert forest biomass into renewable fuels

$ 10,000,000

Adoption of a new technology to produce cross-laminated timber (CLT)

$ 7,000,000

Conversion of mill residuals into activated carbon through pyrolysis

Eligibility criteria of the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects program

Eligibility for this grant is determined by specific requirements related to the applicant's profile and proposed activities within the IFIT program.

Applicants must be legal entities validly incorporated or registered in Canada.
Eligible entities include for-profit and not-for-profit organizations such as companies, industry associations, and research associations.
Indigenous organizations and groups are eligible to apply.
Provincial, territorial, regional, and municipal governments and their departments and agencies are eligible where applicable.

Who is eligible?

The IFIT funding is open to legal entities that are validly incorporated or registered in Canada. This includes a variety of eligible applicants from the forest sector and associated fields.

For-profit organizations including companies and industry associations.
Not-for-profit organizations such as research associations that are registered in Canada.
Indigenous organizations and groups.
Provincial, territorial, regional, and municipal governments and their departments and agencies, where applicable.

Who is not eligible

This grant does not specify certain exclusions regarding companies or industries due to their status or main activity. All information regarding ineligible applicants is not clearly stated outside the given eligible descriptions.

Eligible expenses

Eligible expenses for the IFIT grant include direct costs necessary for project implementation.

Cost of salaries and benefits.
Overhead expenditures directly related and essential to the project, up to 1.5% of eligible expenditures.
Professional and technical services, including research, consulting, engineering, trades, and laboratory services.
Travel expenses, including transportation, accommodation, and meals (based on National Joint Council rates).
Training costs.
Publication, printing, and other media services.
Data collection services, including processing, analysis, and management.
Licence fees and permits.
Capital expenses.
Retrofitting and upgrading of existing capital.
Material and supplies.
Meeting hospitality and space rental.
Costs associated with environmental assessments.
Technical audits associated with project activities.

Eligible geographic areas

This grant is available to various legal entities validly incorporated or registered in Canada. The eligibility extends across different government levels and Indigenous groups within Canada.

Companies and organizations registered anywhere in Canada.
Indigenous organizations and groups in Canada.
Provincial, territorial, regional, and municipal governments in Canada.

Eligibility criteria of the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects program

The evaluation and selection of projects for the Investments in Forest Industry Transformation (IFIT) grant are based on both mandatory and rated criteria to ensure alignment with the program’s objectives.

Technical Feasibility: Evaluates the project’s execution plan, expected performance, and quality standards.
Innovation: Measures the project’s technological novelty and replicability within the sector.
Partnerships: Assesses the involvement of Indigenous and strategic partners, along with confirmed industry partnerships.
Business Plan: Reviews the financial analysis, risk mitigation strategies, and overall business proposition.
Fibre Supply: Considers the use of underutilized fibre sources and the impact on the local supply chain.
Timing/Project Readiness: Scores the readiness and credible scheduling of the project.
Value for Investment: Evaluates the financial efficiency and proportion of requested funding relative to total project costs.
Diversity, Equity, and Inclusion: Scores the strength and approach of the DEI plan.
Benefits to Canadians: Analyzes the project’s environmental, societal, and economic advantages.

How to apply to the Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects program

Expression of Interest (EOI) Submission

Register with the GCKey through the NRCan Online Submission Portal.
Download the EOI template from the IFIT website to prepare your responses offline.
Log into the portal and complete the EOI form, saving progress frequently.
Submit the completed EOI form before the deadline of the application window.

EOI Evaluation and Feedback

Wait for the assessment of your EOI by IFIT program staff.
If eligible, receive an invitation to submit a Full Project Proposal (FPP).

Full Project Proposal (FPP) Invitation

Receive a notification with the FPP package and submission instructions.

Prepare Full Project Proposal (FPP)

Prepare the FPP along with supporting documents like business plan, project schedule, and financial details.
Gather any optional documents such as letters of support or study results that bolster the proposal.

Submit Full Project Proposal (FPP)

Submit the FPP and accompanying materials through the NRCan’s Online Submission Portal.

FPP Evaluation

The interdisciplinary committee reviews your FPP.
Receive feedback or decision regarding shortlist progression.

Due Diligence Assessment

If shortlisted, provide additional documentation for due diligence evaluation.
Engage with NRCan officials for detailed documentation and requirements fulfillment.

Final Notification and Initiation of Funding Agreement

Receive final decision on funding status from IFIT program.
Negotiate and sign the contribution agreement if approved for funding.

Additional information

Here are additional relevant details for this grant:

The program is experiencing delays in the application review process due to a high volume of submissions and a high-quality standard of proposals.
There is a specific focus on projects that support decarbonization and the efficient use of resources to generate more value from the same amount of wood.
Non-repayable contributions can be up to $10 million for capital investment projects and up to $1 million for studies.
Domestic and international impact assessments may be required based on project characteristics and location.
The granting process includes mandatory Diversity, Equity, and Inclusion (DEI) Plans and Questionnaires.
Quarterly and annual reporting requirements include progress updates and details on diversity initiatives.
The IFIT program includes stringent audits and requires recipients to maintain accurate records for at least five years after project completion.
All funding is subject to the Access to Information Act and privacy regulations, highlighting the importance of confidentiality in handling applicant information.
Potential applicants are encouraged to review a range of preparatory materials available, such as webinars, to assist with the two-phase application process.

Documents and links

Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects

Contact Natural Resources Canada (NRCan)

ifit-itif@nrcan-rncan.gc.ca

Apply to this program

Funding for collaborative forestry projects in Ontario