Federal Minister of Natural Resources Joe Oliver was in Vancouver Thursday handing out “green” transformation money to help B.C. mills become more competitive.
Oliver announced new investments totalling $53.5 million to improve the competitiveness of Canada’s mills and the technologies they help create.
The largest single cash injection went to FPInnovations’ transformative technologies research program, which is designed to develop and deploy emerging technologies that use wood fibre.
“This announcement will help build and strengthen an innovative and diversified forest products sector in Canada,” said Alan Potter, vice-president of FPInnovations, a private, non-profit forest research institute. “That is good news for job growth and new economic opportunities for hard hit forestry communities.”
The collapse of the U.S. housing market and the pine beetle infestation has made life difficult for B.C. mills in recent years, forcing operators to shut down their operations and lay off workers to stay afloat.
In recent months, however, a new breed of forestry specialists has emerged, touting the benefits of new technologies that use wood fibre to create everything from clothing to tires and airplanes parts (see
“Tech and forestry sectors join forces” – issue 1132; July 5 to 11.)
Oliver said Ottawa’s investment in the sector would strengthen it for the long term.
“Transformation and innovation are integral to building a more prosperous future for the many communities that depend on our forest sector,” Oliver said during a speech in Vancouver.
The federal government also announced funding for several mills in B.C. through the Pulp and Paper Green Transformation Program, a $1 billion strategy to help Canada’s pulp and paper producers improve efficiency and compete with their U.S. counterparts.
A Canfor (TSX:CFP) pulp mill in Prince George received $6.41 million for an energy and air emissions upgrade project, while Mercer International’s (NASDAQ:MERC) Celgar mill in Castlegar received $9.73 million for the second phase of its $40 million green transformation project.
Howe Sound Pulp and Paper and Neucel Specialty Cellulose also received funding Thursday.
Joel McKay
Twitter:jmckaybiv