Transformative Technologies - Federal Initiative Final Report 2008/09
W-2634
Location
Vancouver, British Columbia
Language
English
Abstract
‘Creating value via innovation’
Value creation is at the core of FPInnovations’ mission. This is an ongoing project focused in better assessing the value proposition of our organization’s undertakings while also scanning the marketplace for innovations. Over the past year, the Forintek Division adopted a methodology developed by SRI International to assess value creation from innovations. This project mainly reports the results of applying that methodology, known as NABC (Needs, Approach, Benefits, and Competition) to the Transformative Technology Projects identified as suitable for such approach. A follow up project contracted to CINTRAFOR on perceptual mapping for decking materials is also reported here, at a preliminary level. Among all the products included in a survey targeting U.S. decking and railing builders wood plastic composites are rated with the longest serviceable life, easiest to maintain, minimal surface checking and the most environmentally friendly. Longevity and ease of maintenance are rated as the best features of plastic lumber.
The first part of this project (2007/2008) studied innovation according to three components or domains: manufacturer, user, and R&D organizations. In the latter domain, some initiatives were proposed to be carried out at FPInnovations to foster innovation and their status is also reported here. Similarly, we update the research being done on the living with wood component.
Among the Transformative Technology projects, cross laminated timber is the project with the most potential for a successful product development and commercialization. We show it to be feasible to manufacture in Canada, with significant environmental and technical virtues, a large North American market and a competitive cost structure for low rise apartments and non residential buildings, such as schools. The analysis for wood plastic composites was done in detail under project 5905B. A detailed feasibility analysis for a commercial plant in West and East Canada found low margins for decking whilst attractive margins for railing. WPCs could become more profitable once the housing crisis and the high inventories are past. Regardless of price and theoretical margins, the decking and railing business is highly dependent on having the right distribution channels and sales force. Engineered wood products such as the proposed VSL shows interesting opportunities and should be further pursued. Its value proposition comes from its superior mechanical properties and lower cost. Its suitability for smaller logs is also a desirable trait.
A lower level of market erosion for treated lumber in Canada by WPC and global environmental trends signal for the need of developing innovative agents for treating lumber. Carbon-based preservatives may be the answer, although several crucial questions will have to be answered. If copper were to be banned, then new opportunities will arise. More research needs to be done but the opportunities are significant, with a potential market share of 180-300 MMBF in the residential market.
Increased acceptance of finger jointed studs and the need to comply with fire resistance code has created a significant demand for high performing adhesives, such as PUR and PVA. Chemical modification has brought substantial improvement in softening and bonding properties of PUR and PVA finger-joints, while nanotechnology is expected to raise the adhesives’ autoignition temperature. The latter approach will be tested next year. The maximum market penetration is estimated at 900 MMBF fingerjointed studs.
A project looked at impregnation and surface modification using nanotechnology. This has the potential to allow the use of lesser known species by improving surface properties in a cost effective way. This process has an IP advantage for FPInnovations. The potential market penetration is estimated at $100-300 million. The economics of a commercial plant will be worked out next year.
Finally, a research breakthrough led by PAPRICAN on cellulose nanocrystals was analyzed in terms of its value proposition. Findings suggest a potential market value of $300 million, with the immediate application being water-based paints and coatings. This analysis continues with the evaluation of a pilot plant to be built in Eastern Canada. FPInnovations has secured an IP advantage on the technology.