Accelerating Canada s Forest-based Bio-economy Trevor Stuthridge Executive Vice President - FPInnovations January 2018
Strategic Context 2 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Aligning Political Strategy lexicon FEDERAL GOVERNMENT + INNOVATION 3 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Aligning Leveraging Strategy alignment INTER-G0VERNMENTAL A Forest Bioeconomy Framework for Canada VISION Canada will be a global leader in the use of sustainable forest biomass as part of the transition to a low carbon economy. Rise of e-media - decline of some newsprint markets Consumer demand -low carbon, sustainable products Canada advantage - highest biomass per capita in world
Aligning Strategy Global -National -Regional REGIONAL CLEAN-TECH STRATEGIES 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Unique Private Public Partnership Unique Public-Private Partnerships NATIONAL-SCALE INNOVATION HUBS
Key challenges 7 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Feedstock availability MODELLING BIOMASS QUALITY AND QUANTITY
Embracing the innovation value chain FPInnovations Research Programs DEFINING PAN-SECTOR PRIORITIES FIRST NATIONS BUSINESS & TECHNICAL SUPPORT MARKET INTELLIGENCE
Supporting science Managing choice TECHNO-ECONOMIC TOOLS
Covering all development bases Unique Private Public Partnership BALANCING TECHNICAL AND MARKET KNOWLEDGE Engineering Design 3% Pilot Plant Construction 15% Process Development 35% Market Development 5% Application Development 34% Codes and Standards 8%
De-risking scale-up GOVERNMENT & INDUSTRY CO-INVESTMENT
Supporting underpinning science Supporting science ACADEMIC NETWORKS and PARTNERSHIPS Forest Innovation by Research and Education 100+ Professors 400+ Graduates and PDFs
What we know what we don t know OPEN INNOVATION
Examples of Sector Innovation 15 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Managing Aligning our future Strategy resource FOREST 4.0 Estimated savings of $1.57 $2.13/m 3 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Smart Manufacturing Supporting uptake SM2 INITIATIVE CT Scanning technologies: Delay segregation Optimize breakdown Increase value recovery 2-6% $2 -$4 million per year per mill Species identification: Spectral analysis Target product performance Radio frequency drying: Lower energy footprint Improved product consistency
The Next Petro- Generation to Bio-Engineered transitionwood Products INNOTECH AB FPI PANELS INITIATIVE Pan-Canada industry partnership on OSB panels and OSB-based siding
Decarbonizing our society Supporting uptake CONSTRUCTION AS A CARBON SINK 13 Storey Residence - Quebec City 18 Storey UBC Brook Commons - Vancouver
The Petro- to Forest Bio- transition Biorefinery THUNDER BAY TMP-BIO INITIATIVE Deconstruct Release Wood chips 1000 kg Separate Lignin 450 kg Sugars 450 kg
The Petro- to Bio- transition Engaging beyond our sector + borders BIOMASS TO BIOFUELS
Creating Aligning new Strategy value chains NEXT GENERATION BIOECONOMY CLUSTERS TMP-Bio Lignin/Sugar BELT Biodiesel Celluforce CNC Chemical industry 22 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Building Trans-Provincial fromsuccess Synergies LIVING THE BIOECONOMY OPPORTUNITY Clean Transportation & Infrastructure Sustainable Living 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Taking nodes to Aligning the next Strategy step BioDesignSUPERCLUSTER 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations. FIVE YEAR TARGETS $6 B GDP growth 64,000 new direct/indirect jobs 4 MT/yr GHG reduction 5+ multi-national investments 18 Storey UBC Brook Commons - Vancouver
Innovation to Commercialization Principles 25 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Maximizing the functional value of wood OPPORTUNITY ASSESSMENT TOOLS 26
Nano-crystalline Cellulose ADVANCED BIOMATERIALS FEEDSTOCK 27
Supporting science Protecting the innovation space BIO-NANOMATERIALS IP LANDSCAPE
Making the right friends DOWNSTREAM PARTNERSHIPS 29
The Petro- Aligning to Bio- production transitionto market CRITICAL CO-INVESTMENT IN SCALE-UP World s first Cellulose Nano-Crystals plant 1 ton/day - Joint Venture (CelluForce) with Domtar Capital: $45 M R&D to Demo: $10.5 M World s first Cellulose Filament plant 5 ton/day - Strategic alliance with Kruger Capital: $43 M R&D to Demo: $21.5 M Canada s first Lignin Separation plant 30 ton/day - Licensing to West Fraser (>$10M) Capital: >$10 M R&D to Demo: $12.5 M Windsor QC -2012 Trois-Rivières QC - 2014 Hinton AB -2014
Focus, focus, focus VALLEY OF DEATH Bridging the GAP: Assessing the best applications to target Validating the value proposition Building market visibility and engagement Evolve to the market needs Defining and achieving product specifications Align scales and efficiencies between production and markets
Strategies in the pre-commercial step RE-ALIGN THINKING Bridging the GAP: Transition business vehicle and approach Maintain discipline through effective project management tools Keep focused on commercial demands Ensure the cash flow to support development time Seek out co-investment opportunities from non-traditional parties Prepare for a longer gestation period than you hoped
Beyond the Valley of Death? REALITY CHECK FROM A SUCCESS Beyond valley of death? 2005 - Decision to commercialize 2012 Formation of Celluforce; first pre-commercial production 2015 New shareholders brought in 2016 Initial sales objectives surpassed 2017 Commercial applications being tested/supplied 2019 Next-scale production facility (proposed) 33
Critical success factors 34 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Anticipating NEXT MOVES CREATING andseizing opportunities WITHIN current operations AND beyond traditional markets
Research OCUS INNOVATIVE solutions FOCUSED on impact FASTER to market 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
Playing the odds Managing RISK andreward using an evidence-based approach 37
Fast-tracking INNOVATION & PARTNERSHIPS ACCELERATING innovation & ENABLING partnerships among industry, governments & academia Coalitions of the Willing 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
trevor.stuthridge@fpinnovations.ca Follow us on www.fpinnovations.ca http://www.ligninconference.com 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. FPInnovations, its marks and logos are trademarks of FPInnovations.
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