Canada Invests in Innovative Forest Technology and Job Creation in Quebec 

News release

January 15, 2020                                                         Saguenay, Quebec                                                Natural Resources Canada           

Canada’s forest sector remains a vital source of wealth for Canadians, providing economic, social and environmental benefits. By investing in Canada’s forest sector, the Government of Canada is growing the economy while protecting our environment.

The Honourable Diane Lebouthillier, Minister of National Revenue, on behalf of the Honourable Seamus O’Regan, Canada’s Minister of Natural Resources, today announced a $4.9-million investment to Resolute Forest Products Canada Inc. for an innovative technology that will accelerate advanced biomaterial production and create over 20 full-time jobs.

The funding will allow Resolute to expand its Kenogami facility in Saguenay, Quebec, to manufacture industrial-scale cellulose filaments. Cellulose filaments — a biomaterial extracted from wood pulp — have unique properties that allow them to be used as a reinforcing agent in consumer products such as polymers and cement. The innovation will increase production efficiency and product quality while taking advantage of all-fibre residue.

The Government of Quebec also contributed $6.7 million towards the project through their ESSOR Program (French only) and Wood Innovation Program (French only). The project will be carried out in partnership with FPInnovations, which developed the process.

Funding for this project is provided through the Investments in Forest Industry Transformation (IFIT) program, which encourages the Canadian forest sector to implement unique technologies and produce new forest products for emerging markets. By investing in forest sector technologies, we can provide greener solutions that will help tackle climate change and transition toward a low-carbon economy.

Through Budget 2019, the Government of Canada committed an additional $82.9 million over three years, starting in 2020–21, for the IFIT program. This investment will continue to encourage the industrial commercialization and adoption of innovative technologies and processes in Canada’s forest sector.

Canada’s climate plan includes measures to protect the environment and leave a healthier planet for future generations, including actions to protect our oceans, phase out coal-fired electricity, invest in renewables and public transit and reduce plastic pollution. Nature-based solutions are a key part of Canada’s plan to combat climate change while growing the economy.


“The Government of Canada will continue to invest in Canada’s forestry sector to encourage market diversification and help innovation drive clean growth. We are proud to partner with Résolu on this technological innovation, which will increase competitiveness and create good-paying jobs.”

Diane Lebouthillier
Minister of National Revenue 

“Present in every region where it supports the economy of 20% of the municipalities, the forestry sector is a major player in Quebec with close to 60,000 direct jobs. However, its growth depends largely on its ability to innovate and to develop products and technologies that meet new market needs. I must point out that the Government of Quebec is committed to supporting this industry, which must modernize, adapt, diversify and reinvent itself in response to the changing global economic situation. With this major project, Resolute FP Canada is truly in the game and will remain competitive.”

Pierre Fitzgibbon
Minister of the Economy and Innovation and Minister responsible for the Lanaudière region

“The new commercial cellulose filament plant represents an opportunity for Resolute to enter into non-traditional growth markets with innovative technologies.”

Yves Laflamme
President and Chief Executive Officer of Resolute Forest Products

Associated links


Natural Resources Canada
Media Relations

Carlene Variyan
Director of Communications
Office of the Minister of Natural Resources

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