Forest Biomass Program

up to $10 million grants available FOR biomass projects in Ontario!

Funding Overview

Indigenous bioeconomy partnerships projects

• Funding up to 80% of total eligible project costs, to a maximum of $250,000 per project.

Exploring biomass pathways projects

• Funding up to 50% of total eligible project costs to a maximum of $100,000 per project.
  • For-profit applications that demonstrate substantial involvement/benefit to Indigenous partners are eligible for funding up to 80% of total eligible project costs to a maximum of $130,000 per project.
  • For-profit applications that demonstrate substantial involvement/benefit from academic, non-profit, and/or municipal and regional government partners are eligible for funding up to 70% of total eligible project costs to a maximum of $120,000 per project.

Innovative bioproduct manufacturing projects

• Funding up to 50% of total eligible project costs to a maximum of $5 million per project.
  • Projects receiving funding under other Ontario programs will not be eligible for funding under the IBM stream with the exception of programs that are meant to provide general benefit to a company (such as the Industrial Electricity Initiative, Northern Energy Advantage Program, an IESO energy procurement contract and tax credits).

Modernization projects

• Funding up to 35% of total eligible project costs to a maximum of $10 million per project.
  • Projects receiving funding under other Ontario programs will not be eligible for funding under the MOD stream with the exception of programs that are meant to provide general benefit to a company (such as the Industrial Electricity Initiative, Northern Energy Advantage Program, an IESO energy procurement contract and tax credits).

Eligible Applicants

The entities eligible to be considered for funding are businesses, municipalities, Indigenous communities and not-for-profit organizations located in Ontario that have a project that will expand the use of forest biomass and enhance the forest biomass supply chain.

Eligible Activities

Indigenous bioeconomy partnerships (IBP) stream

• Studies, plans, evaluations, assessments, or related activities to identify or develop economic or business opportunities utilizing forest biomass
• Strategic, business, human resources, marketing and financial planning or community economic development planning
• Development or expansion of Indigenous joint ventures, partnerships or businesses
• Capacity development and training
• Development of tools, technology, products, services and systems
• Engineering design, environmental planning and permitting or other project design activities
• Site development, facility construction and commissioning, and business start-up and expansion of operations

Exploring biomass pathways (EBP) stream

• Engineering and feasibility studies
• Pre-commercial and commercial scientific trials
• Operational and technical requirement assessments, for projects that use forest biomass as a primary feedstock

Innovative bioproduct manufacturing (IBM) stream

The IBM stream will diversify the forest sector by supporting alternative uses of forest biomass in a new and/or innovative initiative, which could include, for example, the reduction of greenhouse gas emissions associated with the production of another product (such as steel, minerals, cement) or commercializing other novel uses of biomass.

Modernization (MOD) stream

MOD stream applicants will be required to provide a modernization plan that demonstrates how the project will result in supply chain and process-based improvements that maintain or increase the use of forest biomass and modernize key aspects of facility operations.

Eligible Costs

For all program streams, eligible project costs must be incremental to the applicant and directly related to the project. Eligible project costs include, but are not limited to:

• Professional, technical and legal services
• Salaries, wages and benefits, excluding post-employment benefits such as severance
• Planning and design costs
• Training and skills development
• Facility rentals
• Transportation costs
• Capital costs, including purchase or lease equipment and machinery
• Rolling stock directly related to and necessary for the project, such as harvesting equipment, tractors, biomass processing equipment (does not include vehicles such as trucks, vans, cars)
• 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)
  • note: the value of the total in-kind contributions for staff salaries or other remuneration cannot exceed 10% of the total eligible costs

Additionally, there are eligible project costs specific to each program stream. They include, but are not limited to the following.

Indigenous bioeconomy partnerships and exploring biomass pathways projects

• Administrative costs that are directly linked to and have been incurred for the study, such as:
  • Communication costs (such as long-distance calls or faxes)
  • Printing or photocopying by outside suppliers
  • Acquisition of documents used exclusively for the study
  • Document translation
  • Costs related to meetings and public gatherings that communicate the study to the public and that collect feedback, such as facility rental, A/V equipment, etc.
• Land leases for demonstration plants, not to exceed three years.
• Research and development costs including third-party verification technology readiness level, certification and standards testing.
• Honoraria, ceremonial and hospitality costs for community engagement events and project meetings.

Innovative bioproduct manufacturing projects

• Project facility modifications/upgrades directly attributable to and necessary for the project.
• Research and development costs including third-party verification of technology readiness level, certification and standards testing.

Modernization projects

• Project facility modifications/upgrades directly attributable to and necessary for the project.