THE NEW GLITZY FOREST PRODUCTS INDUSTRY: An Emerging Player in the Bio-Economy

By Catherine Cobden

Recent media reports have suggested that one of Canada’s oldest economic sectors, the forest products industry, is in great need, as one prominent newspaper put it, of some razzmatazz.   After all, the market for paper products has been shrinking and the malaise in the American housing market continues to depress demand for lumber.  Might the mighty forest products sector of the past be on its way to fading into the sunset?

Well, fear not. Traditional lumber and pulp and paper mills are now looking at producing innovative new products ― the likes of jet fuel, bio-plastics, and futuristic ultra-light weight materials ― all based on wood from our facilities’ waste streams. In essence, the sector is embracing a snazzy new vision that is helping to transform the industry and turn yesterday’s traditional lumber-jacks-in-plaid sector into a dynamic sunrise business producing innovative bio-products.  The forest products sector of old is now helping lead the way to establish Canada as a global player in the new bio-age.

Biomass from trees already fuels more than two thirds of the energy requirements of the member companies of the Forest Products Association of Canada (FPAC), with surplus production being added to electricity grids to power homes.  The pulp and paper sector produces renewable energy from biomass at a level equivalent to three nuclear reactors ― enough power for both Edmonton and Calgary or the entire Maritime provinces.

But the bio-revolution in Canada’s forest products industry is about more than just helping produce the kind of clean energy that is increasingly attractive in a world concerned about the environment and escalating oil prices. 

Our operations are morphing into bio-refineries that extract more valuable products from every tree harvested.  By adding these novel technologies into our existing operations, wood from our waste streams can  produce light bio-plastics for car parts, non-toxic green chemicals suitable for food processing, and rayon used in clothes.  And there are many other exciting possibilities on the near horizon – imagine wood in rubber tires; or producing smart bio-active paper and packaging that could indicate food freshness, provide allergen alerts or remove pathogens from water.

The most exciting development may lie in the possibilities inherent in producing an ultra- sophisticated new material called nano-crystalline cellulose.  This novel product has incredible properties―for example, it is as much as eight times stronger than stainless steel and has unique colour features.  These properties suggest it could be used in airplanes, lipstick and even in bullet proof vests.  The forest industry innovation leader, FPInnovations, is now working with industry partners on a demonstration plant in Quebec that could soon produce nano-crystalline cellulose at commercial levels.

Yesterday’s waste stream is rapidly becoming tomorrow’s revenue stream. The traditional lumber and pulp and paper industry is continuing to add on the production of these new bio-products as side businesses that can add tremendous value and capture niche markets around the globe.  Recent reports predict the market for bio-products is growing rapidly and is estimated to reach $200 billion dollars a year by 2015.

So when you look at a tree, don’t just think about wood or newsprint.  Think of its potential for clean fuels, for innovative new medicines, for renewable fabrics and more.

Now that’s razzmatazz.