FedDev invests $12 million in Bioindustrial Innovation Canada

Bioindustrial Innovation Canada (BIC) will resume seed funding for firms commercializing bio-based technologies after a four-year lull. The Sarnia ON-based former Centre of Excellence in Commercialization and Research (CECR) received $12 million from the Federal Economic Development Agency for Southern Ontario (FedDev) through its Investing in Regional Diversification initiative and $3 million from Ontario's Ministry of Research and Innovation and Science.

The funding will be augmented with $12 million from BIC and its partners to go towards the creation of a Centre for Commercialization of Sustainable Chemistry Innovation at the Western-Lambton Research Park. Of the FedDev money, $5.5 million will be invested in start-ups — the same amount BIC had invested in new firms prior to 2012 before CECR funding ran dry.

"BIC is in good shape now. We're well funded for the next four years and in a position where we can operate in the future without additional support," says Murray McLaughlin, former BIC executive director now in charge of government and international relations (R$, July 8/16). "We'll match FedDev's $5.5 million with money coming back from previous investments."

McLaughlin says it's taken a long time to build up BIC to the point where it can open the new centre and strive to operate autonomously without further public support. Core funding through the Network of Centres of Excellence's CECR program was not extended past an initial seven-year period, prompting BIC officials to seek new funding sources.

The FedDev funding was set to flow in 2015 but negotiations were interrupted by the federal election, requiring a re-start with a new government . The deal was approved in January but only announced this week.

BIC is at the core of an emerging Hybrid Chemistry Cluster in a region once known as Chemical Valley. It provides services, facilities and expertise to new and existing firms focused on developing green, clean and sustainable technologies. It was responsible for attracting Minneapolis MN-based BioAmber to the region where it built a full-scale plant for converting renewable feedstocks into "green" chemicals replacing petroleum-derived chemicals.

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