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INVESTMENTS IN FOREST INDUSTRY TRANSFORMATION

PROJECT PROPOSALStream 1 – Capital Investment Projects

Updated Spring 2021

PROJECT PROPOSAL PACKAGE OVERVIEWApplicants are encouraged to review the Investments in Forest Industry Transformation (IFIT) Applicant Handbook Stream 1: Capital Investment Projects prior to completing the project proposal. The Handbook was developed to assist applicants in preparing their submissions to the IFIT program. It provides guidance on the type of information to be included in the application form and describes the additional documents that are required as part of a complete project proposal package. It also explains how the IFIT program will review submissions in a consistent, fair, and transparent manner and how the program will communicate with applicants at different stages of the process.

This form is broken down into five (5) major parts followed by annexes, attestations, and a submission checklist:

PART 1: EXECUTIVE SUMMARY...............................................................................................................2

PART 2: APPLICANT INFORMATION.........................................................................................................2

PART 3: PROJECT INFORMATION............................................................................................................4

PART 4: MANDATORY CRITERIA..............................................................................................................5

PART 5: RATED CRITERIA.........................................................................................................................9

ANNEX A: STATEMENT OF WORK..........................................................................................................17

ANNEX B: RISKS AND MITIGATION MEASURES.....................................................................................18

ANNEX C: FINANCIAL ANALYSIS WORKBOOK........................................................................................19

ATTESTATIONS......................................................................................................................................20

PROJECT PROPOSAL PACKAGE CHECKLIST............................................................................................22

Applicants are required to complete the application form, annexes A through C, and mandatory attachments and submit the project proposal package through Natural Resources Canada’s funding portal, INTEGRO. Please confirm that all mandatory attachments are included as per the project proposal package checklist at this end of this document. Incomplete project proposal packages will not be reviewed.

NOTES TO APPLICANTS

1. To select a checkbox - right click in the box, select “properties”, select “checked”.

2. It is the responsibility of the applicant to ensure the word limits are respected for each question. The box sizes in this form do not necessarily reflect the word limit - you may wish to use the “Word Count” tool in your word processor (e.g. in Microsoft Word: Review Tab / Proofing Section / Word Count Tool).

3. Unless otherwise specified, the “Proposed Project”, the “Project”, or the “Proposal” in this application form refers to the proposed project submitted to the IFIT program.

4. Completion and submission of this project proposal to IFIT does not mean that the proposed project will be approved by IFIT.

5. Applicants must submit all information specified in this application form. Failure to provide the necessary information may lead to rejection of the Proposal. It is the responsibility of the applicant to ensure that the Proposal clearly and thoroughly demonstrates how each criterion is met. The attached technical information is required to support the information in this application form.

6. The applicant should provide information concisely while still providing sufficient details to ensure complete understanding by reviewers.

7. This form is confidential when completed, with the exception of marked fields.

8. When you have completed the application form, please upload this form and mandatory annexes and supporting documents via the Natural Resources Canada Funding Portal - INTEGRO.

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PART 1: EXECUTIVE SUMMARYPlease note that information entered in this section may be shared publicly.

Legal name of applicant company:

If operating name is different, please provide it or enter NA:

Project Title:Project location

Facility:

City:

Province:

Briefly describe the proposed project and how it constitutes an innovation within the forest sector that leads to a more diversified product mix in one of the following categories:

advanced biomaterials and biochemical,

pulp and paper diversification,

next generation building products, or

liquid/gaseous biofuels.

(400 words maximum)

PART 2: APPLICANT INFORMATIONHead office address Street Address:

City/Town:

Province:

Postal Code:

Company GST number:

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Annual sales in Canadian dollars:

Company Website:

Number of full-time employees:

Number of part-time employees:

Number of years company has been in operation:

Please provide your company’s North American Industry Classification System (NAICS) code or mark as unknown:

Do you produce softwood lumber products or are you affiliated with a company that produces softwood lumber in Canada? Yes No

If yes, please describe below. (100 words maximum):

Has your company received funding from Natural Resources Canada in the last 5 years? Yes No

If yes, please specify the name of the program:

Primary Project Contact

Name:

Title:

Company:

Telephone:

Email:

Project responsibilities:

Preferred language: English French

Secondary Project Contact

Name:

Title:

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Company:

Telephone:

Email:

Project responsibilities:

Preferred language: English French

PART 3: PROJECT INFORMATION

3.1 Forest Products Facility:

Provide a short description of the facility at which the project will take place. (200 words maximum):

3.2 Project Funding:

Estimated total project cost:

IFIT funding request (maximum 50% of total project cost up to $10M per project): $ %

How have capital and project cost estimates been established? Please note that it is mandatory that the estimate is within a +/-20% degree of accuracy.

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Other Sources of Funding:Include only confirmed funding where an agreement has been signed. Do not include financial institutions.

Other Source of Funding 1:

Name of Organization:

Contact (if known):

Other Source of Funding 2:

Name of Organization:

Contact (if known):

Other Source of Funding 3:

Name of Organization:

Contact (if known):

For any unsecured funding (other than IFIT), what is the contingency plan in the event funding is not secured in time to start the project? (300 words maximum):

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PART 4: MANDATORY CRITERIAApplicants must demonstrate how they meet the IFIT program’s Mandatory Criteria. Applicants that are not eligible recipients or do not propose eligible projects will not be given further funding consideration.

Eligibility statements provided by the applicant should be supported with sufficient information to allow the program to confirm eligibility based on the application package. Failure to clearly demonstrate that the project meets every mandatory criterion may result in the project being eliminated from funding consideration.

4.1 Eligible RecipientsEligible recipients must be for-profit companies located in Canada that must either:

produce forest products in an existing forest product facility (for example, pulp, paper, or solid/engineered wood products facility)

OR are/will be new entrants in the forest sector for the purpose of the proposed

project.

Eligible recipients can include includes clusters, joint ventures, and consortiums, provided that a for-profit company acts as the lead applicant.Do you meet the above criteria? Yes NoDescribe your principal line of business and outline the forest products you currently produce. (300 words maximum):

4.2 Targeted Innovation Categories

Please identify ONE category below which is linked to the proposed project.The proposed project must clearly fall under one of the IFIT program’s four targeted innovation categories (please see Applicant Handbook for detailed category descriptions).

Advanced Biomaterials and Biochemicals

Pulp and Paper Diversification

Next Generation Building Products

Liquid and Gaseous Biofuels

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Provide a short description that supports the selection. (200 words maximum):

4.3 Advancement of an Innovation The proposed project must represent an innovative advancement of a technology or process for the production of a new bioproduct to ensure the competitiveness of Canada’s forest sector.

All of the four following statements must be true to meet this criteria:

1. The project will produce a new bio-product leading to a more diversified product mix in the Canadian forest sector and/or target new commercial applications or new markets.

2. The project proposes the implementation of innovation in a forest sector manufacturing facility in Canada.

3. The project constitutes a first-in-kind, at the proposed scale and specifications, in the Canadian forest sector.

4. Projects is at demonstration or commercial scale.

Do you meet all the above criteria? Yes No

How does the project target new commercial applications or new markets for a bio-product(s)? (250 words maximum):

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In what way is the project a first-in-kind, at the proposed scale and specifications, in the Canadian forest sector? (250 words maximum)

What is the scale of your project?

Large demonstration scale – Technology employed to demonstrate product process for technical and market analysis (i.e. pre-commercial development).

Commercial – Full scale facility that intends to produce products for profit.

Unsure

Please describe the production capacity of the proposed technologies (e.g. the volume of feedstock the equipment can process, the volume of product that can be produced, etc.).

If the project is scaling-up existing technology, please describe the scale-up in terms of feedstock volume, production volume, and operating parameters. (250 words maximum)

4.4 Integration within the Forest Sector Supply Chain

The project must be located at an industrial facility, existing or new, in Canada. It may be: connected to an existing forest sector industrial process (e.g. innovative project within

an existing facility).OR

a stand-alone project within the supply chain (e.g. production of an innovative new product at a designated facility).

Do you meet the above criteria? Yes No

Clearly describe how you meet the above criteria. (1,000 words maximum):

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4.5 Primarily Based on Wood Fibre

Project uses material that is derived from wood fibre. This includes, but is not limited to, by-products generated by industrial wood processing and wood residues.

Do you meet the above criteria? Yes No

PART 5: RATED CRITERIA

5.1 Technical Feasibility

i. Describe the product(s) that will be produced and/or the technology that will be implemented by this project. Include a description of the process used to implement the project. Applicants may consider referencing relevant attachments. (1,000 words maximum):

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ii. Provide any product standards or certifications that need to be met by your product. What product specifications will be monitored to achieve a quality product? (300 words maximum):

iii. What research and development activities have been completed to date in support of the proposed project? (500 words maximum):

iv. What remaining engineering design and/or technical studies are required to initiate the project? Have engineering firm(s) been identified or retained to perform these studies? (500 words maximum):

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v. Has the process/technology been demonstrated or verified by a third party? If so, who? (500 words maximum):

vi. Describe your company’s experience with completing innovative industrial projects of similar scale. (500 words maximum):

vii. Provide information for key project team members:

Name Role Organization Relevant Experience/Expertise

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5.2 Innovationi. Describe how the project is innovative for the Canadian forest products sector. (1,500

words maximum):

Applicants may consider the following: Is it an entirely new product or technology or a first implementation in Canada (at the

proposed volumes or specifications) or globally? How was this determined? Is it an innovative solution to a specific industry or regional challenge? How is the proposed technology or product(s) a departure or improvement on current

technologies or products that may be in Canada or globally? How does this new product compare with similar products already produced (e.g. by the

applicant or competitors)?

ii. What are the competitive and market access hurdles that need to be overcome (e.g. regulatory approvals, market positioning, cost of product)? (250 words maximum):

iii. Do you have the rights to operate the intellectual property (IP) for the life of the project? Is the project expected to generate IP (copyrights, trademarks, patents, industrial design rights, trade secrets, etc.)? Has an IP management plan been created to outline the IP rights of the project collaborators? (500 words maximum):

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iv. Describe any Canadian technology content employed by the project. (250 words maximum):

5.3 Project PartnershipsIf you have more than one partner, please repeat sections for each. This section is not meant to capture corporate partnerships (e.g. legal joint ventures). Note that a partner must have a vested interest in the project (e.g. an equipment provider would not be considered a partner).

Documentation MUST be attached to validate the partnership claim.

Legal Name of Partner:

Business Sector of Organization:

Website:

Primary Contact:

Title (e.g. Senior Engineer):

Email:

Phone Number:

Address:

Describe how this partnership benefits the project (e.g. technical expertise, market entry, in-kind/cash contribution). (300 words maximum):

Legal Name of Partner:

Business Sector of Organization:

Website:

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Primary Contact:

Title:

Email:

Phone Number:

Address:

Describe how this partnership benefits the project. (300 words maximum):

5.4 Business Plani. Provide a summary of the project business plan. Note that a full business plan is a required

attachment.

Applicants may consider the following when answering this question: How does the proposed project fit into the applicant’s strategic plan? What market research has been completed to date? What is the strategy for market entry? Are there any off-take agreements in place? Does the project address changing consumer preference or product regulations? What market advantage will the proposed products have? (i.e. benefits over competitive

offerings) (1000 words maximum):

ii. Provide a supporting rationale explaining necessity of IFIT funding to the success of the project.

Applicants may consider the following when answering this question:

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What factors typically linked to innovation are being de-risked through IFIT’s contribution to the project?

Is IFIT funding required to meet an internal hurdle rate test? What is this hurdle rate? Has the innovative nature of the project made attracting project financing (e.g. debt,

equity) more difficult? Is the project in competition with other internal projects? Does the innovation involve high technological, market and/or financial risks?

(500 words maximum)

5.5 Fiber Supplyi. Does your project use a waste stream or underutilized wood fibre?

Yes No

ii. Describe the fibre supply including its source, security, and term. Describe any impact of the project on the fibre supply chain in the proposed region. (500 words maximum):

5.6 Timing

Estimated project start date (YYYY/MM):

Estimated project end date (YYYY/MM):

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i. Please indicate which of the following are in place for the project as of the date of your project proposal submission:

Construction-ready engineering and costing studies. Required permitting and environmental assessments have been applied for and approved or are pending approval and will be issued according to project schedule. A confirmed project site with the necessary resources. Third party funding is confirmed. Project internally approved for spending. Fibre supply/feedstock confirmed.

ii. Using the table below, describe any required permits or third party approvals required prior to construction or project commissioning.

Permit/Approval Name

Expected date to obtain

Short Description/ Impact on Project

Issuing Body

5.7 Benefits to Canadians

i. Describe and quantify where possible any social benefits the proposed project may generate for local communities and/or for Canada.

Benefits may include: Creation of spillover employment opportunities (e.g. within the supply chain,

construction-hours, etc.). Future employment if the proposed project were scaled up (demonstration

advancing to commercial or replication of commercial scale). Training. Student employment or scholarships. Increased diversity and inclusion within the organization. New community infrastructure.

(1,000 words maximum)

Please note that a diversity and inclusion plan is required as a mandatory attachment to the project proposal.

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Number of jobs created as a direct result of the project:

Number of jobs maintained as a direct result of the project:

Number of person-hours required for construction:ii. Describe and quantify the environmental impacts that would result from the

implementation of the project. This should consider both direct environmental benefits and spillover benefits of the project. (500 words maximum):

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ANNEX A: STATEMENT OF WORKPlease complete a Statement of Work for the project, including major tasks and key activities required to complete those tasks. Describe deliverables and timelines. The major activities must adequately reflect the scope of the work of the proposed project and show progress throughout the duration of the project.

The Statement of Work will form the basis of the scope of the contribution agreement. The following general tasks may be considered; however, applicants are encouraged to use tasks that best align with the proposed project:

Project management and engineering Equipment procurement and installation Civil and structural installation Mechanical installation Electrical and instrumentation installation Commissioning Trials and optimization

Task name Task Activities/Description

Start Date (YYYY/MM)

Completion Date

(YYYY/MM)

Deliverables/Outputs

1.

2.

3.

4.

(add rows as necessary)

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ANNEX B: RISKS AND MITIGATION MEASURES Using the table below, summarize the risks associated with the project. For each risk, indicate the relative probability of occurrence, the estimated risk impact, and provide a summary of the risk mitigation and risk response strategies to reduce the probability and/or impact of the risk: (please add rows for each additional risk).

Key RisksProb.Low/

Med/High

ImpactLow/

Med/HighRisk Mitigation

Technical Risks

Intellectual Property Risks

Commercial Implementation and Market Entry Risks

Regulatory and Permitting Risks

Budget and Financing Risks

Project Plan and Timeline Risks

Business Model and Business Plan Risks

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ANNEX C: FINANCIAL ANALYSIS WORKBOOK The financial analysis workbook is provided in a separate Excel file, which is available for download on the IFIT program website. A completed workbook is required as a mandatory attachment to the project proposal package. Instructions for completion are included in the workbook.

The workbook will provide financial information on the applicant and the project, including company financial projections, a listing of key equipment, and a breakdown of partner contributions.

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ATTESTATIONS Please PRINT, SIGN, and SCAN this section and include it as a pdf in your project proposal submission.

Applicant name:

Project title:

Date submitted (MM/DD/YY):

By submitting this proposal, the project applicant:

1. Attests they have read and understand all the terms and conditions of the Investment in Forest Industry Transformation (IFIT) Program set out in this project proposal and the Applicant Handbook.

2. Attests that the company is legally registered or incorporated in Canada.

3. Attest that the information provided is accurate to the best of their knowledge.

4. Attests that approval, from any affected parties, has been obtained to share any confidential information that is included in the project proposal.

Please note that federal reviewers are bound by the requirements of the Access to Information Act and the Privacy Act regarding the treatment of confidential information.

5. Understands that, if the project is accepted under the IFIT program, no liability and no obligation exists on the part of Natural Resources Canada to make a financial contribution to the project until a written contribution agreement is signed by both parties.

6. Understands that project costs presented in this project proposal must be estimated with a degree of accuracy of plus or minus 20%.

7. Understands that funding that may be obtained under the IFIT program will not be used for the production or export of softwood lumber products.

8. Agrees, by checking below, that Natural Resources Canada can share non-confidential information provided with other funding agencies in cases where this may be of benefit to the project or applicant.

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Natural Resources Canada will safeguard personal information according to federal information protection standards under the Privacy Act and other applicable provincial or territorial privacy legislation of relevance.

Yes, information can be shared No, information cannot be shared

Please sign below to confirm these attestations:

Signature Date

Name of Duly Authorized Officer for Applicant Title

By signing this document, the officer attests that he/she has provided all necessary documentation to constitute a completed project proposal and has the necessary authority to apply to the IFIT program in the name of his/her company.

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PROJECT PROPOSAL PACKAGE CHECKLISTIn addition to this Word application form to be submitted through Natural Resources Canada’s INTEGRO funding portal, the following documents are required for a complete project proposal package.

Please complete the following checklist to confirm that your project proposal package is complete. Document file names should follow the presented file naming convention, while incorporating your company name.

Project Proposal Checklist Included Not Included File Naming Convention

Application Form (including Annexes A (Statement of Work) and B (Risks and Mitigation Measures)

00-IFIT6-company-Application

Attestations - signed PDF (2 pages) 00-IFIT6-company-Attestations

Mandatory Attachments

1. Annex C: Financial Analysis Workbook 01-IFIT6-company-Financials

2. Business plan 02-IFIT6-company-BusinessPlan

3. Organization chart 03-IFIT6-company-OrgChart

4. Project schedule 04-IFIT6-company-Schedule

5. Process flow diagram 05-IFIT6-company-ProcessFlow

6. +/-20% cost estimate 06-IFIT6-company-CostEstimate

7. Diversity and Inclusion Plan 07-IFIT6-company-DI

8. Preliminary engineering study 08-IFIT6-company-EngStudy

9. Site layout 09-IFIT6-company-SiteLayout

Optional attachments, if applicable to proposed project

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10. Results from studies or trials 10-IFIT6-company-StudyResults

11. Letters of Support 11-IFIT6-company-SupportLetters

Any documents that applicants wish to include in their submission that are not listed above will require justification for inclusion and must be referenced within this application form. Please ensure that the naming convention is followed.

Document Included Brief Description and Justification for Inclusion

File Naming Convention

12. Document Name 12-IFIT6-company-DocName

13. Document Name 13-IFIT6-company-DocName

14. Document Name 14-IFIT6-company-DocName

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