by Neville Gilfoy

The forest products industry is experiencing significant challenges: reduced demand, increasing energy and transportation costs, and as a result, a decreasing ability to attract capital investment.

In response, the industry has begun to seek out new ideas and opportunities emanating from the production of bioenergy and biochemical products from wood feedstock (the byproduct from manufacturing of finished wood-based products). As big as the challenges facing the industry are, so too are the opportunities and potential if vision, courage, and entrepreneurship exploit the advantages.

Processes being considered are using renewable byproduct to produce environmentally responsible bioenergy, biofuels, biochemicals, and other bio-products. This opens up an overwhelming opportunity for entrepreneurs, investors, technology producers, and governments—all in concert with the current industry players.

At a recent gathering in St. Andrews, N.B., options were discussed and some fears were expressed. Overall though, the key conclusions from the Atlantica BioEnergy Task Force meetings were that change must come to this sector now. If the main power companies are to buy the bioenergy product it must be done properly and this will take collaboration, communication, and lots of capital.

So, once again we find ourselves sitting on a potential gold mine of opportunity and high-knowledge job creation—an industry that can attract and employ new capital and that could result in best practices in sustainable technologies and innovation product. To accomplish this will require bold action, especially on the part of the existing forest industry giants. They cannot hunker down and say, “We make good products and can’t afford to become predominantly energy suppliers.”

Well, why not? Ten years from now, this could be a whole new industry and the miserly hand wringing over cost-benefit analysis today will be long forgotten.

Rural Atlantic Canadians know what it takes to adapt. Perhaps it’s in our own backyards (literally) where we’ll find the entrepreneurship, investment, and unbridled enthusiasm for transforming our forest products sector into a leader.