2010/2011 www.fpinnovations.ca 1

FPInnovations

TM

A Program for Forest Products R&D and Sector Transformation

Alan PotterExecutive Vice President

I-CAN Innovation School

Charlottetown, PEIOctober 20, 2011

Introduction

• FPInnovations – Canada’s National Forest Products Research Institute

• Canada’s Forest Sector Transformation Strategy

• Implications for Future Forest Products Research Program Design

2Canada’s Forest Sector Innovation Hub

FPInnovations is a merger in 2007 of Canada’s forest sector research institutes

Feric – Forest Engineering Research Institute of Canada

CWFC – Canadian Wood Fibre Centre of the Canadian Forest Service (CFS) of Natural Resources Canada

Paprican – Pulp and Paper Research Institute of Canada

Forintek – Canada’s National Wood Products Research Institute

Canadian WoodFibre Centre

3Canada’s Forest Sector Innovation Hub

Federal Government

Industry – 370+ CompaniesProvincial Governments

Shared Priorities, Shared Risks,Shared Benefits, and Shared Costs

British ColumbiaAlbertaSaskatchewanManitoba OntarioQuébecNew BrunswickNova ScotiaNewfoundland &LabradorYukon

A Collaborative Partnership

4Canada’s Forest Sector Innovation Hub

FPInnovations’ presence

Forest Sector Transformation Strategy

•More efficient and effective business processes with respect to current production activities

Increasing Productivity &

Competitiveness

•Faster and efficient expansion of product sales to new and emerging markets (geographic & new applications)

Expanding & Diversifying

Markets

•Systematically looking at the opportunity to leverage environmental stewardship and unique environmental attributes of forest products

Leveraging Environmental

Branding

•Developing and assessing opportunities to develop new fibre based products: e.g. new cellulose, hemicelluloses and lignin material, bio-products

Maximizing Fibre Value

5Canada’s Forest Sector Innovation Hub

Sector Transformation

Sustainable Forests

Commodity Wood Products

Commodity Pulps & Papers

Building and Living with Wood

• Engineered Composites &

Building Systems• Sustainable Construction

• Appearance Products

Specialty Pulps & Papers

• Modified Fibres• ‘Green’ Papers

& Packaging

Bio-energy & Bioproducts

• Energy Self Sufficiency• Energy Export• Bio-products

6Canada’s Forest Sector Innovation Hub

2009/10 Biopathways Study 1

• Sector will continue to be founded on wood products manufacturing

• New investment returns will come from converting residual wood to new ‘Bioproducts’

Role of wood in building a Green Future

1 By Forest Products Association of Canada and FPInnovations

7Canada’s Forest Sector Innovation Hub

The Fibre Tool Box

Specialty Pulp CNFWood

ProductsNCCPulp

Re

-en

gin

eer

fo

r V

alu

e

Wood Constituents

LigninNFCMCC Sugars

8Canada’s Forest Sector Innovation Hub

FPInnovations Priorities

Increasing Productivity &

Competitiveness

Forest inventory & fibre characterization

Forestry operations & fibre delivery

Efficient & flexible manufacturing

Alternative uses for wood chips

Energy efficiency & self-sufficiency

Reduced environmental

impact

Value chain optimization

Expanding & Diversifying

Markets

Market Intelligence

Science-based support for

current and future market access

Building with Wood

Living with Wood

Leveraging Environmental

Branding

Reduced carbon footprint

Life-cycle analysis

Green building standards

Green fibre-based packaging

Maximizing Fibre Value

Biopathways decision tools

Biomaterial and related products

Bio-chemicals & bio-fuels

Engineered and composite wood

products

Next generation papers & fibre

products

9Canada’s Forest Sector Innovation Hub

An Innovation Hub

Canada’s Forest Sector Innovation Hub

Collaborative R&D

InnovationsImplementation, Deployment and

Commercialization

Needs and Opportunities

Governments

Universities

FPInnovations

Industry

Innovation

Hub

10

FPInnovations’ University Networks

ForValueNet

SENTINELBioactive

PaperLignowork ArboraNano

BL-NCE

Innovation Wood Products

& BuildingSystems

BiomassConversion

GreenFibre

ValueChain

Optimization

Next GenerationBuildingSystems

NextGenerationPulps & Papers

Energy andChemicalsFromBiomass

NovelBioproducts

LavalUBC

UQATUQAM

TorontoQueen’s

DalhousieLakeheadMcMaster

Polytechnique

Laval UBCUNB

UQATUNBCUQAMAlberta Toronto Queen’s

Lakehead

UNBUBCUQATCarletonLaval OttawaMcGill RyersonTorontoWaterlooUWO

McMasterPolytechnique

DalhousieTorontoGuelphAlbertaMcGillUQAMUQTRUNBUBC

McGillUBCUNB

UQTRAlbertaToronto

FPInnovationsSherbrooke

AlbertaMcGillUQTRLavalUQATUBC

UBCUWO McGillOttawaGuelphQueen’sToronto

LakeheadSaint Mary’s

GuelphConcordiaQueen’sToronto

UBC

NSERC/NCE/CWFC

StrategicNetworks

UNBUBCLavalUQARAlbertaVictoriaToronto

MemorialMontrealNipissingLakehead

Sherbrooke

FibreCentre

Canada’s Forest Sector Innovation Hub 11

Advisory Processes

Three levels of advisory groups:

FPInnovations Board• Corporate Governance

• Strategic direction for FPinnovations

• Provide input to the evolving NFSTS*, based on NRAC recommendations

• Set high level priorities and KPIs**

National Research Advisory Committee (NRAC)• Set Future Focus Technologies Program direction and priorities

• Discuss and make recommendations to the Board re the innovation components in the NFSTS

• Guide strategic funding allocations

• Monitor progress of FPInnovations’ research

• Ensure efficiency and effectiveness of advisory processes

Program Advisory Committees (PAC)

• Focused primarily on operational improvements, best practices and implementation

• Set research focus areas and priorities to ensure member needs are addressed

• Review and approve annual research plans and monitor progress

*National Forest Sector Transformation Strategy **Key Performance Indicators

12Canada’s Forest Sector Innovation Hub

Research Program Groupings

ResourceSupply(CWFC)

OtherPrograms:

WFORGPIT

ForestOperations

Primary WP Manf’g

SecondaryWP Manf’g

AdvancedBuildingSystems

MarketPulps

Paper &Packaging

BioMaterials BioChem’ls&

BioEnergy

FPInnovations Collaborative Research Programs

Transformative Technologies

Inventory and Attributes (CWFC)

BioProducts

Building & Living with Wood

Maximizing Value

ProvincialInitiatives

BC Hem-Fir Initiative

Hardwood Initiative

CRIBE

Sask. Regional Development

Member Funded ‘CORE’

Research

Reduce Cost & Improve Productivity

Reduce Environmental Impact

Product / Process Improvement

Best Practices

Technology Transfer

Implementation Assistance

Annual Member Service Plans

Workshops and Seminars

FPI Member Services

Concerted R&D

14Canada’s Forest Sector Innovation Hub

• Market input early in process• Understand customer needs to develop the right new products• Build partnerships to accelerate the delivery of new products• Capital and production cost known and optimized earlier• Alignment of key players

New productideas

Universities Research labs Acquired IPs

Delivering to customers

Engineering analysis / design

Market analysis / development

End-usersPartners

Customers

FPInnovationsin collaboration with

industry / governments

R&D

Concurrent Research and Engineering

A Common Language for Innovation

15Canada’s Forest Sector Innovation Hub

Wood is pivotal to a sustainable future

16Canada’s Forest Sector Innovation Hub

17

www.fpinnovations.ca