INVESTMENTS IN FOREST INDUSTRY TRANSFORMATION

FULL PROJECT PROPOSALStream 1 – Capital Investment Projects

5th Call for Proposals

APPLICATION FORM OVERVIEWApplicants are encouraged to review the Investments in Forest Industry Transformation (IFIT) Applicant Handbook Stream 1: Capital Investment Projects prior to completing the Full Project Proposal form. 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 and describes the additional documents that are required as part of the submission. It also explains how the IFIT Program will review proposals 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 six (6) major parts followed by annexes, attestations, and a submission checklist:

Part 1: Executive SummaryPart 2: Applicant InformationPart 3: Project InformationPart 4: Mandatory CriteriaPart 5: Rated CriteriaPart 6: Expected Benefits and Performance Management Annexes

A – Statement of WorkB – Risks and Mitigation MeasuresC – Financial Analysis Templates

Attestations Application Package Checklist

The IFIT Program will be accepting proposals through its Funding Portal INTEGRO. Applicants will be required to input their answers to Parts 1 through 6 as noted above directly in the online portal. This application form is provided to enable applicants to get an overview of the requirements, work collaboratively to complete the information, or seek approvals prior to applying. As a best practice, applicants are encouraged to use this form to draft their responses, however applicants will be required to transfer the information directly to the online portal. The Annexes and Attestations must be completed in a spreadsheet and word processing program respectively and uploaded through INTEGRO. The Application Package Checklist is a tool for applicants and does not need to be submitted to NRCan.

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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 character limits are respected for each question. The box sizes in this form do not necessarily reflect the character limit - you may wish 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 Investments in Forest Industry Transformation (IFIT) program.

4. Completion and submission of this application to IFIT does not imply 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 criteria 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 submit all required information 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:

Latitude/longitude coordinates:

Briefly describe the proposed project and how it constitutes an advancement of a forest sector technology, process, or product in Canada (2,000 characters maximum):

PART 2: APPLICANT INFORMATIONHead office address: Street Address:

City/Town:

Province:

Postal Code:

Company GST number:

Annual sales in Canadian dollars:

Company Website:

Number of full-time employees:

Number of part-time employees:

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Number of years company has been in operation:

Has your company (or your partner organization(s)) received funding from Natural Resources Canada in the last 5 years?

Yes No

If yes, please specify the name of the program:

Does your company have a Workforce Diversity and Inclusion Plan in place?

Yes No

If you answered yes, you are encouraged to include the plan as an attachment.

Please note that a Workforce Diversity and Inclusion Plan is a Program requirement for all funded projects. If your project is selected for funding, the Plan will be required prior to receiving funding. A template is available on the IFIT website, however, applicants may use the format of their choice.

Primary Project Contact

Name:

Title:

Company:

Telephone:

Email:

Project responsibilities:

Preferred language: English French

Secondary Project Contact

Name:

Title:

Company:

Telephone:

Email:

Project responsibilities:

Preferred language: English French

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PART 3: PROJECT INFORMATION

Application Stream:

Stream 1.a: General Enterprise

Open to companies of any size, including small enterprises requesting more than $1 million for a total project of any cost. Maximum funding amount per project is: $20 million

Stream 1.b: Small Enterprise

To be eligible under this stream, applicants must meet all of the following conditions: Company employs 50 or fewer people Funding amount requesting from IFIT is $1 million or less Total project cost including IFIT requested funding is $3 million or less

If the above conditions are not met, please select stream 1.a.

Provide a short description of the facility at which the project will take place (350 characters maximum):

Project Funding:

Estimated total project cost:

IFIT funding request (maximum 50% of total project cost):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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Estimated total project cost by government fiscal year and funding source:Please note that the government fiscal year run from April 1 – March 31 (e.g. April 1, 2020 – March 31, 2021)

Funding Source

April 2020-March 2021

April 2021- March 2022

April 2022-March 2023

April 2023-March 2025

Total Amount

IFIT Program

N/A IFIT eligible cost period ended March 31, 2023.

Applicant

Other

Total Project

Other Sources of Funding:Please note that confirmed funding means that an agreement has been signed.

Name of Organization Requested Funding Amount Confirmed (Yes/No)

For any unsecured funding (other than IFIT), when do you expect it to be secured? What is the contingency plan in the event funding is not secured? (1,400 characters maximum)

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PART 4: MANDATORY CRITERIA

a) Eligible Recipients

Eligible recipients are for-profit companies located in Canada that either: produce forest products in an existing forest product manufacturing 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 No

Describe your company’s principal line of business. (350 characters maximum)

If you are a lead applicant for a cluster, joint venture, consortium or similar organization, please describe the organization and your role within it. (350 characters maximum)

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b) Technology Advancement

The proposed project must constitute an advancement in the Canadian forest sector.

All of the following must be true to meet this criteria: The project will produce or will lead to the production of innovative bioproducts or

bioenergy OR will employ new process to produce forest products. The proposed project will be carried out at a pilot to commercial scale. (IFIT funding

cannot support projects at a research and development stage.) The project should be the first installation, at the proposed scale and specification, in

the Canadian forest sector (including components of larger systems and technologies that improve efficiency of upstream activities or logistics within the forest sector supply chain).

Do you meet the above criteria? Yes NoWhat is the scale of your project?

Pilot or demonstration scale – Technology employed to produce a small quantity of a product for technical and market analysis (i.e. will produce small volumes in support of future full scale 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.)

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c) 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 process or

technology to improve efficiency within an existing (open or closed) 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. (2,700 characters maximum):

d) 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

a) Technical Feasibilityi. Describe the product(s) that will be produced or the technology that will be implemented

by this project. Include a description of the process used to implement the project and, if applicable, an estimate of the quantity of the new product that is expected to be produced once the project is implemented. Applicants are encouraged to attach and reference a technical report, which provides information supporting the successful implementation. (5,500 characters 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? (1,400 characters maximum):

iii. 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? (1,400 characters maximum):

iv. Has the process/technology been demonstrated or verified by a third party? If so, who? (1,400 characters maximum):

v. What are the key performance indicators (KPIs) for the project? KPIs should be specific, easily measured, and time bound. They may include production, social, or environmental targets. Please note that financial indicators will be captured in Annex C of the application. (1,400 characters maximum):

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vi. Describe your company’s experience with completing innovative industrial projects of similar scale. (1,400 characters maximum):

vii. Provide information for key project team members:

Name Role Organization Relevant Experience/Expertise

b) Innovation

i. Describe how the project is innovative for the Canadian forest products sector. (e.g. Is it an entirely new product or technology, a first implementation in the Canadian forest sector? Is it an innovative solution to a specific industry or regional challenge?). (2,700 characters maximum):

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ii. What is the technology or market gap addressed by this project? (1,400 characters maximum):

iii. Do you have the rights to operate the IP for the life of the project? Is the project expected to generate any intellectual property (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? (1,400 characters maximum):

iv. Describe any Canadian technology content employed by the project (700 characters maximum):

c) 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:

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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) (1,400 characters maximum):

Legal Name of Partner:

Business Sector of Organization:

Website:

Primary Contact:

Title:

Email:

Phone Number:

Address:

Describe how this partnership benefits the project (1,400 characters maximum):

d) Business Plan

i. Provide a summary of the project business plan. Note that a full business plan is a required attachment for all streams of funding. (2,000 characters maximum):

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e) Fiber Supply

i. 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. (2,000 characters maximum):

f) 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 full 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

PART 6: EXPECTED BENEFITS a) Describe and quantify where possible the expected economic benefits that would result

from commercial implementation and market adoption of the proposed technology. Specific elements to consider may include increased economic activity and market diversification. (2,700 characters maximum):

b) Describe and quantify where possible any social benefits the proposed project may generate for local communities and/or for Canada. Benefits may include the creation of

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spillover employment opportunities (e.g. within the supply chain, construction-hours, etc.), potential employment if the proposed project was scaled up to a commercial implementation, training and student employment, increased Diversity and Inclusion within the organization, new community infrastructure, improvements to environmental reputation, or new product offerings meeting changing consumer needs. (2,700 characters maximum):

Number of jobs created as a direct result of the project:Number of jobs maintained as a direct result of the project:c) Describe and quantify the environmental impacts that would result from the

implementation of the project. (2,700 characters maximum):Direct environmental benefits of the proposed project

Indirect or spillover benefits

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 encourage 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

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Commissioning Trials and optimization

Task name Description Task Activities Completion Date 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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APPENDIX C: FINANCIAL ANALYSIS TEMPLATESPART 1: PRO FORMA COMPANY BALANCE SHEET (Please complete and submit Excel version)

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PART 2:– INCREMENTAL INCOME STATEMENT AND INCREMENTAL PROJECTED INCOME

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PART 3: PROJECT BUDGET BREAKDOWN

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PART 4: KEY EQUIPMENT BREAKDOWN

Please identify key project equipment. Note that this list does not need to be exhaustive. As a guideline, capital representing a purchase value that is greater than 5% of total project costs should be included. Groups of equipment or systems (for example for turn-key contracts) can be listed as one entry. Note also that equipment selection does not need to be finalized and estimates are acceptable.

ATTESTATIONS Please PRINT, SIGN, and SCAN this section and include it as a pdf in your application 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 Proposal Form and the Applicant’s Guide.

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 application.

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 (NRCan) 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 application must be estimated with a degree of accuracy of plus or minus 20%. For stream 1.a., general enterprise projects, this cost estimate must be supported by a preliminary engineering study.

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 NRCan can share non-confidential information provided with other funding agencies in cases where this may be of benefit to the project or applicant.

NRCan 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 application and has the necessary authority to apply to the IFIT program in the name of his/her company.

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APPLICATION PACKAGE CHECKLISTIn addition to the online Application Form completed through Natural Resources Cananda’s INTEGRO funding portal, the following documents are required for a complete application package.

Please complete the following checklist to confirm that your application package is complete.

Full Project Proposal Checklist Included Not Included

1. Appendices A-C: Financial Analysis Templates

2. Business plan

3. Organization chart

4. Project schedule

5. Process flow diagram

6. +/-20% cost estimate

7. Diversity and Inclusion Plan (optional at this time)

8. Preliminary engineering study - optional for Stream 1b: Small Enterprise applicants

9. Site layout - optional for Stream 1b: Small Enterprise applicants

10. Study or trial results – optional for Stream 1b: Small Enterprise applicants

You may wish to attach other documentation, including but not limited to a site map, process/piping and instrumentation diagram, detailed engineering, pilot plant results, sensitivity analysis, or a risk mitigation strategy.

If you have included non-mandatory documents, please specify the file names for all additional attachments:

Document Included File Name Brief Description and Relevance

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