Natural Resources Canada on June 3 awarded nearly $130 million to 56 projects that aim help advance transformation of the country’s forest sector. Projects focused on wood pellets, bioenergy and biocarbon are among those to receive funding.

According to the agency, the projects selected to receive funding will develop new low-carbon wood technologies, expand the use of mass timber in construction, support Indigenous participation and forest-sector businesses, increase manufacturers’ capacity to add value to wood products and help diversify Canada’s export markets.

The funding is related to the Canadian Forest Sector Transformation Task Force, which was launched in January 2026 with a mandate to promptly identify practical measures to transform and retool Canada’s forest sector. In conjunction with the funding announcement, the task force on June 3 released its final report outlining recommendations to stabilize the sector, alongside measures to modernize operations, attract private investment, expand the use of wood in construction, increase production of value-added wood products and diversify export markets.

Bioenergy projects selected to receive funding include:
 - Wood Pellet Association of Canada: $473,871 to assess export readiness for thermally treated pellets. The project will also validate demand, sustainability requirements and technical compatibility in priority markets such as the European Union and Japan and enhance international recognition of sustainable Canadian biomass.

- Forest Enhancement Society of BC: $37 million to increase the use of low-value and residual forest fiber by supporting its collection, processing and transport to facilities that can convert it into useful products. By offsetting costs that currently limit its use, the effort will redirect fiber that would otherwise be burned toward applications such as pulp, bioenergy, pellet production and other secondary manufacturing. Working with industry, communities and Indigenous partners, the project will process and deliver large volumes of residual fiber while testing improved handling, logistics and end-use approaches.

Quebec Wood Export Bureau: $5.81 million to support the diversification of export markets for forest products, specifically in the softwood lumber, hardwood, flooring, wood construction and biomass energy sectors. The project will also aim to reduce trade, regulatory and environmental barriers in key markets, including the United Kingdom, the European Union, Mexico, Japan, Korea, China, Southeast Asia, the Middle East and the Caribbean.
......

A full list of awards is available on the Natural Resources Canada website.

Source: biomassmagazine.com