Canadian cluster drives new opportunities in plant protein

Protein Industries Canada (PIC) was created in 2018 as part of a policy initiative of the Canadian government to increase industry-led R&D in various sectors across the country. It is one of five superclusters designed to leverage Canada’s specific expertise and untapped industrial potential in a particular region.

Unlocking Canadian potential

To achieve this aim, Canada sought inspiration from abroad. It recognised from the experience of countries such as Germany, China and the UK the importance – and effectiveness – of supporting regional clusters of excellence.

Focus on plant protein

Along these lines, the Canadian government launched a call for ideas and proposals, with CAN $1 billion on offer to develop successful bids. An initial 60 proposals were whittled down to five regional clusters of excellence: Oceans; Artificial Intelligence; Next Generation Manufacturing; Digitalisation; and – for Western Canada – agriculture.

A key question facing PIC was how to add value to existing excellence in agriculture. It was recognised that Canadian agriculture was very well placed to meet growing global demand for plant protein.

Innovations into practice

The cluster next developed ‘The Road to $25 Billion’, Canada’s plan to capture 10% of the world’s plant-based food industry by 2035 (up from a current 3%). This will be achieved through making Canada a global hub for plant-based food companies, creating a progressive regulatory system for plant-based foods, and focusing very much on innovation. A key benefit of the cluster is that it brings together farmers and policy makers, investors and academia, rather than leaving everyone to work in their siloes.

Over the past four years, PIC, in partnership with the private sector, has invested some CAN $478 million into plant protein-related innovations. These innovations have resulted in 230 unique intellectual property (IP) assets, attracted over $300 million in follow-on private investments.

Some 83% of the IP assets created were generated from small to medium sized enterprises, while 23% were in plant genetics. Some 66% were in farm production technologies, such as enhanced farming efficiencies, supply chain traceability, reducing crop protection inputs, etc. Such investments will further help Canadian agriculture to reduce greenhouse gas reductions, strengthen supply chain and traceability, and reduce the application of crop protection chemicals such as herbicides and fungicides.

Future ambitions

PIC is currently in the process of recapitalising its funding.

In addition, there are plans to invest over $2.5 billion in an integrated agriculture complex, to produce renewable diesel as well as plant protein concentrate from canola. This will process roughly 2 million metric tonnes of canola seed annually, and convert this into 1 billion litres of renewable diesel fuel with a carbon intensity 90% lower than regular diesel fuel. This renewable fuel can be blended directly with existing fossil diesel fuel to significantly reduce its carbon intensity.

The integrated agriculture complex is expected to be operational in 2026.

PIC has set Canada on the path towards becoming a key sustainable exporter of ingredients - with a particular focus on plant-based proteins – as well as an attractive destination for investment.