Canadian Plastics Innovation Challenges – Environment and Climate Change Canada Phase 2 recipients

Backgrounder

The Canadian Plastics Innovation Challenges are a series of funding opportunities through Innovative Solutions Canada. First launched in 2018, the program awards grants to Canadian small- and medium-sized enterprises to develop novel solutions to challenges identified by the Government of Canada. Across 18 challenges, the Government of Canada has committed over $26.8 million to support Canadian businesses to innovate and develop Canadian-made solutions to address plastic pollution and waste.

Challenge category: Advancing reuse to replace single-use plastics

The use of single-use plastic packaging has increased substantially in recent decades, contributing to the growth of plastic waste and pollution. Reusable packaging that is safely and efficiently refilled and reused for its original purpose can reduce waste and pollution while providing additional benefits to consumers and industry. Making reuse cheaper and easier for both industry and the public can help to displace existing practices that rely on difficult-to-recycle and disposable or single-use plastics, helping Canada to reduce plastic waste and pollution and move toward a circular plastics economy.

Challenge category: Improving the collection and/or sorting of plastic film and flexible packaging

Plastic film and flexible plastic packaging are significant contributors to plastic waste and pollution. In 2021, the recycling rate for flexible plastic packaging waste generated in Canada was about 5%, due in part to challenges with collection and sorting. Plastic film is commonly used in the daily lives of Canadians, but film-based plastic items, such as food wrappers and plastic bags, are among the most frequently collected litter items on Canada’s shorelines. Bringing innovative Canadian solutions to the issues of collecting and sorting film, including flexible packaging, can help improve recycling rates and the circularity of plastics in Canada.

After submitting their proof of concept in Phase 1, the two recipients listed below have been invited by the Government of Canada to participate in Phase 2, which provides support to develop a working prototype.

Canadian Plastics Innovation Challenges

Improving the collection and/or sorting of plastic film and flexible packaging (Phase 2)

Company

Location

Project description

Funding

MLVX Technologies, Inc. (DBA Metaspectral)

Vancouver, British Columbia

This project will help address the sorting of plastic film and flexible packaging—materials known to be difficult to process. By integrating artificial intelligence with hyperspectral imaging technology, combined with an air ejection system, the project aims to improve sorting and recycling rates.

Phase 1 of this project demonstrated a cost-effective and accurate sorting system. Phase 2 will work toward an operationally ready prototype.

$799,679

Advancing reuse to replace single-use plastics (Phase 2)

Company

Location

Project description

Funding

Allix Industries Inc.

Carignan,
Quebec

This project will further develop and test a reusable sleeve to replace single-use plastic pallet wrap. The proposed sleeve is compatible with Allix Industries’ innovative automated applicator, which facilitates and accelerates the unitization process—the process of combining multiple smaller items into a larger unit to make it easier to manage or transport. A reusable sleeve that integrates with current management practices has the potential to reduce carbon emissions and protect the environment by reducing plastic waste and pollution.

Phase 1 of this project demonstrated a commercially viable alternative to single-use plastic wrap in a controlled environment. Phase 2 will work toward the development and testing of a prototype in an operational setting.

$800,000

Page details

2025-10-01