Investments in Forest Industry Transformation (IFIT)

Insider Tip

IFIT rewards strong industry co-investment — the average contribution is 35%, well below the 50% cap. Projects that bring 60-65% private capital and show confirmed off-take agreements or market commitments score significantly higher. Join the IFIT mailing list early ([email protected]) to attend NRCan webinars before each CFP window — these webinars clarify evolving priorities (in 2026: plastics substitution and mass timber are hot). Consider applying to the Studies stream first ($1M) to fund feasibility work, then use that study to strengthen a subsequent Capital Investment proposal.

Rejection Pitfalls 10

• Project is not 'first-in-kind' — technology already deployed commercially in Canada (incremental upgrades don't qualify)
• Insufficient industry co-investment — over-reliance on government funding signals weak commercial viability
• Weak market analysis — no clear demand or off-take commitments for proposed products

Success Profile

Established for-profit forest sector company (pulp/paper mill, sawmill, engineered wood manufacturer) with proven operational track record. Proposing a multi-million-dollar ($10M-$100M+ total) first-in-kind technology deployment — bioenergy conversion, biomaterials production, advanced wood products, or biochemicals from wood fibre. Strong financial position to co-fund 50-65% of project costs. Clear market demand for outputs (off-take agreements preferred). Project located in or significantly benefiting a forest-dependent community. Engineering studies already completed or underway. Environmental benefits clearly quantified (GHG reduction, waste diversion, fossil fuel substitution). Note: this program targets established forest-sector companies with multi-million-dollar project budgets — not typical Canadian SMBs.

Evaluation Criteria

Nine evaluation factors: (1) Technical feasibility — execution plan, performance, quality standards; (2) Technological novelty — must be genuinely first-in-kind in Canada; (3) Sector replicability — potential to scale across forest industry; (4) Indigenous and strategic partnership involvement; (5) Financial analysis and risk mitigation; (6) Use of underutilized fibre sources (e.g., forest residues, bark, low-grade wood); (7) Project scheduling credibility; (8) Financial efficiency relative to requested funding; (9) EDI plan strength and environmental/societal/economic benefits. Both mandatory criteria (all must be met) and rated criteria (scored competitively).

Application Steps

Required Documents 14

Eligible Expenses 9

• Capital equipment acquisition, installation, and commissioning
• Retrofitting and upgrading of existing capital assets
• Salaries and employee benefits for project personnel
• Professional services (engineering, consulting, research, lab work, trades)
• Materials and supplies consumed by the project
• Environmental assessments and technical audits
• Travel costs following National Joint Council rates
• Training, publication, and data collection services
• Permits and regulatory compliance costs

Ineligible Expenses 6

• Land and building purchases or construction
• Routine operating overhead beyond 1.5% cap
• Costs incurred outside Canada
• Interest, financing charges, and debt servicing
• Entertainment, lobbying, and advocacy costs
• Costs for technologies already commercially deployed in Canada (not first-in-kind)

Intake Periods

Periodic Calls for Proposals. Current CFP opened February 25, 2026 and closes April 27, 2026. Previous CFPs have been spaced 1-2 years apart. $500M renewal commitment signals continued funding through 2030+. Join mailing list for advance notice.

Deadline Notes

IFIT does not accept applications continuously. It operates through periodic Calls for Proposals with defined Expression of Interest (EOI) submission windows. As of February 2026, a national Call for Proposals was launched under the $500M forest sector commitment. Applicants should join the IFIT mailing list ([email protected]) to receive window dates. The current grant record lists 'Ongoing' which is misleading — it should reflect the periodic CFP structure. [Apr 2026: URL updated — NRCan IFIT page moved.]

Open Application Portal →

Ineligible Organizations

• Not-for-profit organizations (unless as part of a consortium with a for-profit lead)
• Organizations not located in Canada
• Academic institutions (as primary applicants)
• Individuals and sole proprietorships
• Companies without forest sector operations or a credible new-entrant plan

Compatible Programs

Clawback Risk

Medium Risk