Chrysalix Venture Capital has announced an investment in Deadwood Innovations, developers of a hydro-thermal chemi-mechanical process for upgrading low-grade timber into high-value engineered wood products. This investment supports the scale-up from a pilot plant to a 30,000 m3 per year commercial facility in Fort St. James, British Columbia. The initiative also aligns with governmental priorities for Indigenous leadership, carbon reduction, and bioeconomy growth, according to Chrysalix.
The Deadwood process densifies and stabilizes timber using advanced engineering, enabling the conversion of underutilized feedstocks such as wildfire-damaged and beetle-killed logs, as well as low-value deciduous species, into products with the strength and density of hardwoods. Unlike traditional lumber processes, this technology does not rely on resins or high-grade logs, addressing industry challenges like waste utilization and price volatility.
Currently, the pilot phase operates on the Nak’azdli Reserve in collaboration with the Nak’azdli Development Corporation, which holds a 51% equity stake in the first commercial entity. The project emphasizes economic reconciliation, with local governance representation and staffing priorities. The pilot plant, located at the former Tl’oh Forest Products site, will transition to full-scale commercialization to produce consistent, high-quality engineered wood.
Beyond the immediate economic benefits, the project contributes to sustainability by storing carbon in long-lived wood products, mitigating climate change. It supports circular economy practices by repurposing slash piles and pulp logs for structural and decorative applications such as nail-laminated panels, facades, and furniture.
Patents are pending for the process, which has undergone optimization through collaborative testing at the University of Northern British Columbia’s Wood Innovation Research Lab. The commercialization strategy includes engaging with customers to refine product specifications and target industrial applications like rail ties and structural beams. These innovations provide an alternative to emissions-intensive practices like large-scale fiber combustion.
Chief Aileen Prince of Nak’azdli-Whut’en highlighted the potential for widespread benefits, stating, “Successful commercialization of this project will stabilize and strengthen our economy, community, and environmental stewardship.”