FPInnovations applauds the…

FPInnovations applauds the Ontario government’s support of the forest sector, and the continued advancement of traditional and innovative wood products outlined in the draft Strategy. The Strategy aims to promote job creation, encourage economic growth and reduce unnecessary costs for businesses while ensuring Ontario forests are sustainably managed. Among many proposed benefits, the Strategy highlights opportunities for non-traditional and innovative uses of wood fibre, promotes forest-sector growth and aims at creating new markets for innovative and sustainable products. The ambitious target to harvest what is sustainable by 2030 (about 30M m3) creates much potential opportunity; the emphasis on increasing the use of under-utilized species is an area where FPInnovations is well positioned to assist.

The research of FPInnovations and its partners delivers solutions that address the challenges of the entire Canadian forest-sector value chain. This research is well aligned with the Ontario government’s overall goal to increase the competitiveness of its forest industry to meet the demanding realities of the 21st century. FPInnovations and its partners are well-positioned to assist in the Strategy’s implementation across the Province. In Ontario, FPInnovations has maintained a strong strategic partnership with provincial and federal funders including the Ministry of Natural Resources and Forestry (MNRF) to help create and stimulate economic development opportunities in forestry, bio-products, bioenergy, milling and manufacturing, engineered wood products, mass timber, and consumer wood products—through the implementation of science, technology, business intelligence, and market analysis. Our Ontario staff draw on the vast knowledge of the organization’s research scientists and laboratory resources across the country.

FPInnovations can support MNRF and all partners to successfully implement key areas outlined in the Strategy by:
• Catalyzing innovation across the forest sector value chain
• Increasing the utilization of available fibre, especially under-utilized species
• Addressing chronic labour shortages – potential for higher tech/higher paying jobs
• Supporting the development of innovative new products and markets
• Informing investment decisions with objective knowledge, research and technology transfer
• Helping build technical and business capacity with Indigenous forestry businesses

Effectively implementing the Strategy will position Ontario for sustainable growth across the entire forest sector. The opportunities identified to increase the use of wood fibre, coupled with reaching untapped markets through new and innovative products, will play an important role in Ontario’s overall economic growth.

Key Opportunities for FPInnovations to Assist the MNRF (referenced by page)

Page 11 in the Strategy discusses Indigenous participation in the Sector and addressing labour shortages. This aligns well with FPInnovations capacity building and best practices offerings that include various workshops and harvest and haul contractor diagnostic and analysis projects that aim to improve productivity, utilization, business acumen and profitability. In this way, FPInnovations scientists and specialists can help to improve harvesting capacity, address labour shortages, and move wood to mills and manufacturers for processing – specifically by:
• Helping Indigenous entrepreneurs to build technical capacity in forestry and wood products
• Assisting Indigenous small and medium enterprises with business skills development
• Objectively informing Indigenous investment decisions based on resource availability and market potential

Page 13 of the Strategy emphasizes single use plastics – i.e. the potential of replacing single-use plastics with paper options having the potential to improve growth numbers in the pulp and paper sector. FPInnovations has developed a single-use plastic research strategy with several of our scientists and researchers dedicated to improving and optimizing sustainable and durable paper replacements for plastic. Much of what we are undertaking in this regard could be successfully applied in Ontario.

Pages 14 to 16 describe opportunities for Innovation with mention of bio-products, composites, mass timber and engineered wood, all of which align very well with FPInnovations research priorities and many of our existing and on-going initiatives. We appreciate the recognition given on page 14 to Thunder Bay’s forest Bio-Economy Cluster and the world class research facilities, pilot manufacturing sites and demonstration facilities in which we are a key partner including our own Bioeconomy Technology Centre (includes both the Lignoforce and TMP-Bio Pilot Plants). The TMP-Bio Pilot Plant, located in Resolute’s pulp and paper complex, is testing and adding new products such as refined lignin and sugars to this facility’s product mix and revenue streams – and is the next generation of innovative products from wood. Innovative Bio Products are a key factor in increasing the use of underutilized wood fibre. Our continuing strong and effective partnership in Thunder Bay will, under the Strategy, allow for:
• Continued research to derive renewable bio-chemicals from wood (lignin and sugars)
• The development of wood fibre based composites and biodegradable plastics, and work to market with an array of new partners in multiple sectors
• The establishment of a world-class Bio Economy Hub based in Thunder Bay by working with CRIBE and many partners, and link the north and south with respect to innovative bio-product and non-petroleum-based bio-chemical markets

With respect to Mass Timber and Tall Wood, there is an important opportunity to continue to increase fibre utilization by helping to create market pull for Ontario’s wood. FPInnovations role in Ontario and nationally will continue to be research and technology transfer focused and will:
• Inform the codes and standards for building with mass timber and engineered wood in Ontario and across Canada
• Provide technical support to companies manufacturing engineered wood in Ontario
• Offer accredited testing for the certification of engineered wood products
• Advance prefab and modular construction

Although Ontario has lagged in terms of having an established glulam producer, we do have a Nail Laminated Timber (NLT) manufacturer (Timmerman Timberworks in Southern Ontario), and several Cross Laminated Timber (CLT) producers are in the process of establishing plants. NLT manufacturing should also be recognized in the Strategy, as it is inherently more efficient and stronger than CLT, and potentially less expensive. FPInnovations specialists have worked and continue to work closely with all engineered wood manufacturers with respect to quality assurance and testing of their products and in helping them attain product certification.

Page 18 of the Strategy confirms the Province’s commitment to LiDAR and remote sensing technology including UAV’s, in the production of enhanced forest inventory. This again aligns well with FPInnovations on-going work in these areas. FPInnovations recently hosted a series of four LiDAR workshops across Ontario (Kenora, Thunder Bay, Sudbury and Mattawa), co-led with the Canadian Institute of Forestry. The sessions were well attended and well received. FPInnovations and its partners can continue to help Ontario to become a leader in the implementation of LiDAR to produce enhanced forest resource inventory and improve sustainable forest management practices.

Page 20 mentions the development of a Fibre Supply Model: Ontario is working with the Centre for Research & Innovation in the Bioeconomy to develop an economic fibre supply model that will help investors and communities identify options for expanding existing forest production and finding new markets. FPInnovations has been approached to help with this model and has to date provided generalized harvest and haul cost information for the Northwestern Ontario region. Our scientists and specialists have, over many decades, garnered significant forest operations data and undertaken extensive analysis in this regard, enabling FPInnovations to provide well-informed and reliable information to this project.

Page 21 of the Strategy discusses mill residues, specifically the need to maximize the use of mill by-products. This also supports the highly integrated supply chains between pulp and paper, lumber and panel mills, where one mill’s by-product supports another mill’s wood supply and internal energy requirements. These mill by-products also offer an opportunity to develop new and innovative value-added products. This general approach meshes very well with FPInnovations’ Smart Manufacturing Initiative and current suite of projects which aim to improve productivity, efficiency and the bottom line through state-of-the-art innovations in sawmills by:
• Moving from the traditional milling to a modern manufacturing paradigm
• Maximizing recovery and diversification of co-products through state-of-the-art technology (scanning, optimized cutting, sorting, and precision kiln drying)
• Ensuring the best possible use of fibre and residuals based on characteristics to maximize value (including new and innovative products – i.e. engineered wood products)

Page 23 describes the overarching goal of improving competitiveness including the adoption of innovative tools that optimize industrial processes, harvesting, renewal, and road building operations. FPInnovations, along with CRIBE and industry, is specifically mentioned as a partner in this endeavor, and this certainly aligns well with our Smart Manufacturing Initiative as described above, as well as with our comprehensive efforts to modernize forest operations under our major Forestry 4.0 Initiative (described below).

Also on Page 23 the Strategy describes the intent of enhancing the alignment of the trusts, leveraging the silviculture funding available through the Forestry Futures Trust and the Forest Renewal Trust to support the forest sector strategy. FPInnovations research initiatives including Forestry 4.0, Smart Manufacturing and Innovative Bio Products are in part currently funded by the Forestry Futures Trust; we hope that the value and impact that this has created is well-understood, and that this funding will be continued.

On Page 24 under Fostering Innovation, Marketing and Talent, reference is made to assessing the use of autonomous harvesting and transportation technologies, which again fits very well with a major component of FPInnovations Forestry 4.0 Initiative previously mentioned. Testing autonomous vehicles is further discussed on Page 27. Under Forestry 4.0, we are striving to catalyze the complete and thorough modernization of all aspects of forest operations, which in turn improves fibre supply accessibility and utilization, and will help in addressing forest sector labour shortages - key desired outcomes of the Strategy. Specifically, the Forestry 4.0 Initiative aims too:
• Implement modern technology and systems to support real-time decision-making
• Help Small and Medium Enterprise harvest and haul contractors to improve their productivity and bottom line for viability and success!
• Address wood supply challenges with automation and improved fibre flow to company mills and wood manufacturers

Also on Page 24 under Initial Areas for Action and Promoting Innovation – it is excellent to see mention of the extensive partnerships with MNRF (Industry leaders, CRIBE, and FPInnovations, and universities and colleges) working toward the commercialization of innovative forest products and processes, and linking northern fibre supply with southern biochemical producers and engineered wood products manufacturers – so that renewable products can be produced that displace non-renewables and support job creation across Ontario. Maintaining and building this community is vital to the success of this Strategy!

Page 25 mentions increasing wood use overall. It should be considered that governments (municipal and provincial are together (likely) the largest developers in Ontario. There should be a strong policy put in place to promote wood use in public construction projects. There also needs to be a pervasive willingness and desire amongst Ontario’s municipal building officials to support and approve wood building construction. There should be no differences between municipalities with respect to the technical aspects of wood building design/permit approvals, as is currently the case.

Page 26 describes on-going collaboration on carbon analysis between Ontario and Quebec to finalize the development of a tool that can be used by building designers to estimate greenhouse gas emissions from various building designs and help them make the best use of various wood products and the inherent ability of wood to store carbon. FPInnovations scientists have undertaken extensive work in this area and are available to continue to help with any aspect of this project, or any potential future related projects.

On Page 26 the stated desire to make Ontario wood the natural choice could be addressed with some immediate action. The Ontario Wood Program was in the past doing excellent work in this regard, and reconsideration should be made to reinstate its affiliated themes and projects. Ontario needs a much more aggressive marketing strategy. We have a tremendous diversity of tree species and can make a wide variety of high-quality marketable products. It should be realized that many of Ontario’s wood manufacturers, especially hardwood mills are small producers who cannot effectively market on their own. A reinstated Ontario Wood Program, or something very similar would be most helpful.

Page 26 discusses the need to grow talent in the forest sector, and as previously mentioned FPInnovations has an array of best practices workshops and diagnostic and analytical projects in forest operations and wood manufacturing that can help both employees and employers within the forest sector to ‘up their game’. It should however be noted that wages in the broader forest sector are sometimes insufficient to attract the quantity of labour to fill vacancies. For example, the Ontario Structural Wood Association just completed a survey for their members that found this to be a significant barrier to attraction and retention of employees. This needs to be addressed somehow, perhaps through the development of higher-skilled jobs, that ultimately pay better across the Sector.

Page 27 discusses supporting innovation in construction within the context that most buildings in Ontario are still individually designed and constructed as one-off projects and are built almost entirely on-site. The Strategy goes on to say that increasing the adoption of modular building construction and prefabrication using advanced engineered wood products from Ontario’s forests can help the industry innovate. This very strongly aligns with FPInnovations extensive work in sustainable construction including where we have been worked with H+ME Technology (Brockport) in Toronto on their quality control and certification. We continue to help several companies that are already undertaking or working toward modular and prefab construction.

Page 31 mentions bio heat and energy and the desire of the province to promote the use of renewable forest biomass by industry and as an energy source to provide heat and potentially both heat and power for northern, rural and Indigenous communities. FPInnovations scientists and researchers have focused effort in this area for many years, developing a world-renowned expertise. We also feel that while promoting the use of bioheat by northern and Indigenous communities is a good start, we would also like to suggest a government lead and larger coordinated bioheat initiative to locate CHP/generation stations in strategic locations to reduce the uncertainty of where mills can send residues and unmerchantable timber. Recently we have led a partnership that included strong representation from MNRF, that has produced the soon to be published: A Solid Wood Bio Heat Guide for Rural and Remote Communities in Ontario. We are well positioned to help further apply and implement state of the art bio heat and energy technologies, as described in the Strategy.

Page 32 indicates that an Advisory Committee is being struck to oversee development and implementation of a plan for the Strategy. FPInnovations would appreciate consideration to participate in and help with this Committee.

Thank you for the opportunity to provide this commentary on the Strategy. I have attached a PDF slide deck of the briefing note we presented to Minister Yakabuski in the fall for reference. Please contact me directly if you have any questions or require clarification or any additional information.

John Pineau
Provincial Leader Ontario
FPInnovations
John.pineau@fpinnovations.ca
705-845-6310