Amount: up to 35% of total eligible project costs to a maximum of $10 million per project.

The Ontario Forest Biomass Program supports initiatives  that secure and increase long-term wood utilization across the province, with a focus on underutilized species and forest biomass.

This initiative reflects Ontario’s commitment to advancing innovative uses of wood and forest biomass, aiming to generate economic benefits for Ontarians while supporting emissions reduction and climate action.

The program includes four focused streams to help position Ontario as a leader in the growing circular and green economy:

  • Indigenous Bioeconomy Partnerships: Expands Indigenous participation in forest biomass projects and supports community-driven bioeconomy development.

  • Exploring Biomass Pathways: Builds understanding of the technical, economic, and operational aspects of using forest biomass.

  • Innovative Bioproduct Manufacturing: Supports the use of forest biomass in manufacturing, infrastructure, energy, and resource sectors.

  • Modernization: Helps transform and modernize the forest sector for greater competitiveness and involvement in the bioeconomy.

Program objective

The program aims to:

  • expand the volume of wood harvested from Crown forests for use in traditional and innovative products and applications
  • support the sustainability of forest product operations and the contribution the forest sector makes to regional economies, including employment and revenues generated by forest product manufacturing facilities
  • work with municipalities, industry, Indigenous communities and stakeholders to collaboratively identify and invest in viable future uses for wood

Eligibility requirements

The entities eligible to be considered for funding are businesses, municipalities, Indigenous communities and not-for-profit organizations that have an Ontario-based project that will expand the use of forest biomass and enhance the forest biomass supply chain within Ontario.

  • eligible IBP stream applicants are Indigenous communities, Indigenous not-for-profit and for-profit organizations and businesses (51% or greater control and ownership by an Indigenous community or communities, organization or person(s))
  • eligible EBP stream applicants are for-profit organizations, not-for-profit organizations, and businesses which are in earlier phases of exploring the potential use of forest biomass in Ontario.
  • Eligible IBM stream applicants are:
    • for-profit companies operating in Ontario that produce bioproducts in an existing facility using forest biomass, or will adopt the use of forest biomass in their bioproducts production
    • Canadian not-for-profit organizations that can help to facilitate investments in Ontario’s forest bioeconomy
  • Eligible MOD stream applicants must be an existing wood products manufacturing facility operating in Ontario, that plays a key role in regional harvesting and/or supply chains, and which currently consume significant quantities of forest biomass (mill residues and/or forest biofibre) as a primary feedstock.

Eligible costs

For all program streams, eligible project costs must be incremental to the applicant and directly related to the project. Eligible project costs include, but are not limited to:

  • professional, technical and legal services
  • salaries, wages and benefits, excluding post-employment benefits such as severance
  • planning and design costs
  • training and skills development
  • transportation costs
  • capital costs, including purchase and installation of equipment and machinery
  • rolling stock directly related to and necessary for the project, such as harvesting equipment, tractors, biomass processing equipment (does not include vehicles such as trucks, vans, cars)
  • material costs
  • permits or approvals
  • installation and commissioning costs
  • overhead costs directly related to the project, not to exceed 15% of total contribution
  • travel, including accommodation, meals and allowances (based on approved rates)
  • in-kind contribution of staff time by the applying organization’s employees (including permanent and contract employees)
    • note: the value of the total in-kind contributions for staff salaries or other remuneration cannot exceed 10% of the total eligible costs

Amount

Indigenous bioeconomy partnerships projects

  • Funding up to 80% of total eligible project costs, to a maximum of $250,000 per project.

Exploring biomass pathways projects

  • Funding varies based on partnerships. Projects with strong Indigenous involvement may receive up to 80% of eligible costs, to a maximum of $130,000. Those with academic, non-profit, or municipal partners may receive up to 70%, to a maximum of $120,000. All other projects are eligible for up to 50% of costs, capped at $100,000.

Innovative bioproduct manufacturing projects

  • Funding up to 50% of total eligible project costs to a maximum of $5 million per project.

Modernization projects

  • Funding up to 35% of total eligible project costs to a maximum of $10 million per project.

Intake deadlines

The deadlines to apply are:

  • October 15, 2025, at 11:59 p.m. EST
  • April 15, 2026, at 11:59 p.m. EST
  • October 15, 2026, at 11:59 p.m. EST