Venture targets North's assets in non-timber forest products.

Dr. Luc Duchesne has marvelled for years at the vast potential of Northern Ontario's relatively "unexplored" and underdeveloped non-timber forest products (NTFP).

As a research scientist with the Canadian Forest Service and a recognized authority on the bio-products industry, he assisted the government in setting policy dealing with the NTFP sector, but was limited in getting involved in business development.

Now, as a business promoter, his new Sault Ste. Marie-based venture, Forest Bioproducts Inc., intends to capitalize on the world's emerging bio-economy and bring its new processes and technologies to Northern Ontario to create an entire spectrum of new business enterprises for interested communities.

"All markets and aspects of the NTFP industry are exploding right now," says Duchesne, a forester with more than 20 years of experience specializing in non-timber forest products and bio-products.

The bio-economy is being driven by the fact that fossil fuels are running out, resulting in a growing need for renewable energy, plastics and manufactured products that are generated from renewable resources.

"It means we have to do more with what we have," says Duchesne.

Instead of exporting raw commodities, ship a value-added product and create additional employment opportunities, he says.

Their strategy is to target specific successful global businesses and technologies, and tailor them to fit with the forest resources available in a particular community or area.

Together with business partner Norm Jaehrling, their mandate is to identify, evaluate, license and develop technologies and processes in value-added forest resources.

Jaehrling is an economic development officer with more than 17 years' experience in financing business and community partnerships in Northern Ontario.

With the communities they partner with, the company intends to carry out possible business evaluations on suitable technologies and then facilitate financing and business startup, while maintaining a negotiated equity interest.

Duchesne sees opportunities for the North in areas of pharmaceuticals, neutraceuticals, healthy functional foods and renewable energy.

Duchesne says the non-timber forest products industry is vibrant in other places in the world, including Quebec, British Columbia and Alaska.

Sectors such as the blueberry industry are very well structured in Quebec and it can be brought to Ontario.

Wind power has been demonstrated to be a viable renewable energy alternative in other places in the world and the technology is ready.

"We want to assist communities with these kinds of projects," says Duchesne.

He believes an entire community's' industrial base can be built around NTFP, creating hundreds of full-time, part-time and seasonal jobs.

In analysing the region's potential, Duchesne says the North's human resources have been underutilized, especially in the traditional industries.

"The forestry industry cuts more trees and employs less people."

Mechanization is leading to a decline in forestry-related jobs, which has been compounded by the softwood lumber dispute with the U.S., he says.

"There are very qualified people who are completely unemployed," says Duchesne, particularly among First Nations communities. "There's a great deal of eagerness amongst the First Nations to promote social and economic development within their community.

The venture has already attracted the attention of a local biotechnology initiative known as Science Works, a public-and private-sector partnership looking at technology transfer and the commercialization of science.

The company has signed a contract to be eventual tenants of a proposed innovation research facility for science near the Great Lakes Forestry Centre.

By IAN ROSS

Northern Ontario Business