The provincial government is looking to maximize the use of forest by-products, like bark, sawdust and tree limbs.
A new Forest Biomass Program will set aside 20 million dollars to explore new uses and technologies, expand existing companies and develop new projects with Indigenous communities.
Speaking in Atikokan, Natural Resources Minister Graydon Smith says the sky is the limit.
"Biomass is used in everything from soil improvements and landscaping products to building materials to fuel for generating electricity like we see come from biopower right here. And it has the potential to do so much more," says Smith.
The program has four separate components.
The first is the Indigenous Bio Economy Partnership to increase Indigenous participation in the forest biomass industry.
The Exploring Biomass Pathways will provide money for research into the economic and environmental potential of new and existing biomass technologies.
Innovative Bioproduct Manufacturing aims to expand biomass in manufacturing, infrastructure, energy services and resource extraction.
The fourth component provides assistance to companies wanting to expand.
"I can't wait to see the innovative projects that will be made possible by this program's funding because when Ontario's forestry industry succeeds, our communities succeed, our people succeed, our province succeeds," says Smith.
The province will begin accepting applications this summer.