Forest research institute FPInnovations has been awarded $700,000 to to help forest companies create jobs by turning their waste wood into high-value "bio-products," Jobs, Tourism and Innovation Minister Pat Bell said Tuesday.

Specifically, FPInnovations will gauge the extent of B.C.'s bio-economy, and help industry identify cost-effective fibre available for new projects, including areas affected by the mountain pine beetle.

"This investment will help create jobs for families in rural communities all around B.C. by letting us get the most value from every tree we harvest, while helping the forestry industry protect

the environment," Bell said in a statement.

The award follows completion of a report by a three-MLA committee that emphasized a need for for government to take a leading role in developing B.C.'s bio-economy - made up primarily of products based on wood fibre other than traditional lumber.

Examples include renewable fuels, textiles, light-weight plastics, food additives, pharmaceuticals and oil.

On the drawing board are things like bio-active paper products, including facial masks that deactivate viruses; composites for airplane structures; jet fuel additives; and a substitute for petroleum products used to manufacture rubber for tires.

FPInnovations has also received $600,000 from the federal government's transformative technologies research program through Natural Resources Canada.

With that funding, FPInnovations has been undertaking a series of research projects aimed at developing emerging and breakthrough technologies.