Canada’s forest sector is entering a pivotal phase. Global demand for sustainable materials is accelerating. Housing supply pressures are mounting. Industrial decarbonization is no longer optional. In this environment, capital investment in transformative forestry technologies is both an economic and strategic priority.
The Investments in Forestry Industry Transformation (IFIT) – Capital Investment Project Stream, delivered by Natural Resources Canada, is designed to support that transition.
This program provides substantial non-repayable contributions to forestry companies implementing first-of-kind technologies and scaling innovative processes across Canada.
Program Purpose
The IFIT Capital Investment Project Stream supports projects that:
- Accelerate adoption and scale-up of transformative technologies in the forest sector
- Expand production of advanced wood-based materials to support Canada’s housing construction capacity
- Strengthen the long-term economic sustainability of Canada’s forestry industry
- Develop new value-added products and processes to diversify markets
- Increase national supply and demand for forest products
- Advance decarbonization and climate-aligned manufacturing
The program is closely aligned with federal priorities related to housing supply, industrial innovation, and emissions reduction.
Funding Overview
Eligible applicants may receive up to 50 percent of total eligible project costs, to a maximum of $10 million per project.
This is a capital-focused program intended to support implementation, scale-up, and commercialization of innovative technologies rather than early-stage research.
Application deadline: April 27, 2026 at 3:00 PM EST.
Who Can Apply
Eligible applicants include:
- For-profit companies located in Canada
- Existing forest product manufacturers operating at established facilities
- New entrants undertaking an eligible forest-sector project
Projects must demonstrate clear integration within Canada’s forest sector and deliver measurable economic and environmental outcomes.
Targeted Innovation Categories
Projects must align with one of the following innovation streams:
Advanced Wood-Based Building Solutions
Includes engineered wood products, mass timber, and other innovative materials that enhance construction capacity and support housing development.
Biomaterials and Biochemicals
Development of high-value products derived from forest biomass, supporting diversification beyond traditional lumber markets.
Pulp and Paper Modernization
Upgrades that improve competitiveness, efficiency, and environmental performance within existing facilities.
Next-Generation Biofuels
Commercial or demonstration-scale production of advanced biofuels derived from forest feedstocks.
Advanced Decarbonization
Technologies that significantly reduce greenhouse gas emissions across forestry operations and processing facilities.
Eligible Project Requirements
Projects must meet several key criteria.
Advancement of Innovation
The technology must represent a first-of-kind application in Canada or early commercial adoption requiring further de-risking.
Operational Scale
Projects may operate at demonstration scale to validate production and performance, or at commercial scale for market production.
Sector Integration
Clear linkages to the Canadian forest value chain must be demonstrated, including supply inputs and downstream applications.
Strategic Considerations for Applicants
Successful applications typically present:
- A clearly defined innovation gap and commercialization pathway
- Quantified economic and environmental impacts
- Evidence of technical readiness and risk mitigation planning
- Strong financial structure and matching capital commitment
- Alignment with federal housing and climate objectives
Given the competitive nature of this stream and the scale of funding available, early preparation is critical. Capital budgets, engineering validation, emissions modelling, and market demand analysis often require significant lead time.
Positioning Your Project for Success
The IFIT Capital Investment Project Stream represents a major opportunity for forestry companies seeking to modernize operations, enter new markets, or commercialize transformative technologies.
Organizations considering submission should begin assessing:
- Technology readiness level
- Total project cost and eligible expenditures
- Internal capital allocation strategy
- Construction and procurement timelines
- Emissions reduction impact
With up to $10 million available per project, IFIT can materially reduce financial risk while accelerating industrial transformation.
Connect With GrantMatch
GrantMatch supports forestry and advanced manufacturing companies across Canada in securing large-scale government funding. From eligibility validation to technical narrative development and financial structuring, our team provides end-to-end application support.
If your organization is planning a capital investment aligned with innovation, decarbonization, or advanced wood-based materials, now is the time to evaluate fit under the IFIT Capital Investment Project Stream.
Contact GrantMatch to discuss project eligibility and develop a funding strategy ahead of the April 27, 2026 deadline.
