The single largest investment in innovation for Prince Edward Island was announced today by the Government of Canada. Seven Prince Edward Island projects will receive a total of $25.5 million from the Atlantic Innovation Fund (AIF) to help boost Atlantic Canada's capacity to compete in the global, knowledge-based economy.

The $25.5 million in funding was announced today by the Honourable Lawrence MacAulay, Solicitor General of Canada and Member of Parliament for Cardigan, Joe McGuire, Member of Parliament for Egmont, Wayne Easter, Member of Parliament for Malpeque, and Shawn Murphy, Member of Parliament for Hillsborough, on behalf of the Honourable Gerry Byrne, Minister of State for the Atlantic Canada Opportunities Agency (ACOA).

The projects, valued at close to $63 million, will contribute to the growth of new and emerging Island industries such as aerospace, nutraceutical products, aquatic health sciences and justice learning.

"These projects are proof that Islanders have the capacity to innovate and compete with the best in the world," said Minister MacAulay. "They demonstrate what we are trying to achieve with the Atlantic Innovation Fund - to stimulate partnerships among universities, research centres and industry leaders with the goal of moving more of our cutting-edge research from the labs into the marketplace."

Although not able to attend the news conference, Minister Byrne stated, "Atlantic Canada is seeing growth in a number of new and emerging sectors and our traditional industries are increasingly adopting new technologies that are helping them to better compete outside the region. I am confident these projects will lead to the development of new business opportunities and export markets, and the continued creation of good quality jobs for Atlantic Canadians."

"The aerospace industry is an important sector of the Prince Edward Island economy. I am confident that this project will lead to the development of new business opportunities and the creation of quality jobs for people in this province," added MP Joe McGuire. "Prince Edward Island is increasingly becoming a hub for world-class research in a number of key sectors, and the investments from the Atlantic Innovation Fund will help leverage more commercialization and business growth from these efforts," said MP Wayne Easter.

MP Shawn Murphy added, "I am delighted that AIF investments are being made in our cluster of research facilities in Charlottetown. FTC is a leading edge technology transfer model and UPEI has a diversity of first-class, industry- relevant research centres. These two facilities are helping to maintain the viability of some of our key industries, and to promote innovation and growth in promising new sectors."

The following projects will receive AIF funding:

· MDS-PRAD Technologies Corporation will receive $2 million to develop erosion resistant protective coatings for application on gas turbine engine compressors. The research and development of additional coating products will also be undertaken for other processes with the longer term goal of positioning MDS-PRAD as one of the world's premier sources of protective coating products.

· The University of Prince Edward Island, through the Atlantic Veterinary College Lobster Science CentreTM (AVCLSC) will receive $3.3 million to undertake a project that will enhance the R&D capacity for lobster health in Atlantic Canada. The project involves the examination of diseases in lobsters and the development of vaccines, diagnostic tools and a lobster research database for the industry. Total value of project: $5.5 million.

· The Atlantic Canada Network on Bioactive Compounds will receive $ 2.7 million to focus on researching and analyzing the bioactive compounds extracted and/or derived from roses (rose hips) and blueberries, which show great commercial potential. Research and development on bioactive compounds in these two areas will generate and improve linkages and/or partnerships among universities, the private sector and other research institutions. Total value of project: $4.35 million.

· FTC Enterprises Ltd. will receive $4.9 million to undertake the "Atlantic Natural Products Development Initiative" with private sector partners, which will focus on research and development (R&D) identified by the private sector. The R&D will evaluate the benefits of two specific technologies: extraction technologies involving a new family of eco-friendly solvents and technologies using state of the art equipment for supercritical fluids extraction. The R&D activities will result in the development of a series of technical processes and products utilizing environmentally friendly extraction processes. Total value of project: $7.5 million.

· The Centre for Aquatic Health Sciences will receive $2.1 million to facilitate and coordinate aquatic health sciences research, field services, industry support and educational services, so as to increase and expand the economic value of Atlantic Canada's aquatic animal food industries. The Centre will provide such services as laboratory, aquatic health sciences personnel and administration to respond to urgent and ongoing health research and service needs. Total value of project: $5.5 million.

· Atlantic Turbines International Inc. (ATI), headquartered at Slemon Park, PEI, will receive $4 million to launch a comprehensive research and development initiative known as a "Centre of Repair Excellence." This project will allow ATI to research and develop state-of- the-art engine repair techniques, positioning the company as an industry leader in areas of gas turbine engine maintenance and restoration.

· The Justice Knowledge Network (JKN) initiative, will receive $6.5 million to create a comprehensive network of services, products, tools and technologies for law enforcement/correctional services organization and their members. The project will focus on the emerging market of justice training by researching and developing new IT solutions and technologies. Total value of project: $14.9 million.

On July 2nd, Minister Byrne officially announced that a total of 47 projects throughout Atlantic Canada would receive total funding of $155 million through the Atlantic Innovation Fund's first Request for Project Proposals. Overall, the 47 initiatives, including the ones announced today, represent total project costs valued at nearly $400 million.

The project proponents have leveraged additional funding from a variety of private and public sector sources, including contributions from national funding programs such as the Canada Foundation for Innovation and Technology Partnerships Canada.

On July 2nd, Minister Byrne also announced that he would be initiating a second round of AIF funding by issuing a Request for Project Proposals in the coming weeks.

The $300-million Atlantic Innovation Fund is a five-year Government of Canada initiative that is administered by ACOA. It is designed to build the economy of Atlantic Canada by increasing the region's capacity to carry out leading edge R&D that directly contributes to the development of new technology-based economic activity in the region. Specifically, the Fund is aimed at increasing the R&D being carried out in Atlantic research facilities leading to the launch of new ideas, products, processes and services.

For more information or to view downloadable photos related to Atlantic Innovation Fund Project Announcements - Round One, follow the links below:

Atlantic Innovation Fund
http://www.acoa-apeca.gc.ca/e/financial/aif/index.shtml

ACOA's Photo Album
http://www.acoa-apeca.gc.ca/mediaroom/photo/archives/2002/July.shtml

Canada’s Innovation Strategy
http://www.innovationstrategy.gc.ca

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FOR FURTHER INFORMATION, CONTACT:

Peter A.H. Graham 			
Office of Minister Byrne 			
(613) 957-9959
				
Deborah Corey
Atlantic Canada Opportunity Agency
(506) 851-2133

Gas Turbine Erosion Resistant Coatings MDS-PRAD Technologies Corporation

MDS-PRAD Technologies Corporation proposes to develop erosion resistant protective coatings for application on gas turbine engine compressors. The research and development of additional coating products will result in the longer-term goal of positioning MDS-PRAD as one of the world's premier sources of protective coating products.

MDS-PRAD is a Canadian joint venture between MDS Aero Support Corporation, Ottawa, Ontario and Ural Works of Civil Aviation (PRAD), of Russia. MDS Aero Support designs, supplies and supports engine test facilities and test systems for gas turbine engines for commercial and military applications. PRAD originally began its operations in 1939 in the repair and overhaul of gas turbine engines. In the early 1990's PRAD developed a proprietary coating for the Russian Military to protect the compressor airfoils of their helicopter engines which were experiencing extreme erosion wear during the Afghanistan conflict.

During aircraft operations, gas turbine engines are continuously exposed to erosive materials, such as sand, which is more prevalent during take off and landing on unpaved landing strips and desert terrain. PRAD and MDS Aero Support together brought the technology to the attention of the US military. Preliminary testing by the US Military has provided MDS-PRAD with an opportunity to apply the Russian developed coating on the compressor blades of US Navy's General Electric T64 gas turbine engines. The US Navy contract will be conditional upon successful application and demonstration that similar results can be achieved in a westernised environment.

The R & D project located at Slemon Park will undertake the pre-commercialisation stages. When the R & D and testing work has proven successful, the company plans to establish a full production plant in PEI. As opportunities for additional applications develop, further research and development and commercialisation will occur, with MDS-PRAD expecting to employ up to 180 people. The economic benefits of this project to Atlantic Canada are significant in terms of increased export sales and increased research capacity in the rapidly developing aerospace industry.

The project will receive up to $2,000,000 from the Atlantic Innovation Fund over several years, in addition to funding from other private and public sources.

Contact information: Philippe Rodger President and C.O.O. MDS-PRAD Technologies Corporation 1220 Old Innes Road, Suite 200 Ottawa, Ontario Tel: (613) 744-7257 Ext: 256 Email: prodger@mdsaero.ca

Centre for Aquatic Health Sciences - Growing Atlantic Canada's Aquatic Food Atlantic Veterinary College - University of Prince Edward Island

Since its inception in 1986, the Atlantic Veterinary College (AVC), has specialized in aquatic health sciences and has developed a worldwide reputation for innovative research and clinical work. AVC has been involved in such areas as animal-based continuing education, pharmaceutical research, fish health, water reuse, environmental mediation, biotechnology and diagnostic services.

The Centre for Aquatic Health Sciences will facilitate and coordinate aquatic health sciences research, laboratory and applied field research, industry support and educational services, so as to increase and expand the economic value of Atlantic Canada's aquatic animal food industries. This initiative will be governed by an "Atlantic Council" consisting of representatives from supporting partners in private industry, government and academia. The importance of such a centre can be realized when one considers that the farmed aquatic sector in Atlantic Canada has an estimated 7,000 individuals presently employed, with substantial growth potential.

The Centre will provide such services as laboratory, aquatic health sciences personnel and administration to respond to urgent and ongoing health research and disease investigation needs. It will play a major role in (1) significantly reducing the risk of financially catastrophic disease and pathogen outbreaks; (2) protecting exports against disease-related trade barriers imposed by other nations; (3) reducing cost of production as profit margins narrow in an increasingly competitive global marketplace; (4) practicing and demonstrating sound environmental stewardship; and (5) maintaining high public confidence in the quality and safety of aquatic food products. As such, the Centre will be used to attract and build a critical mass of qualified and experienced researchers and specialists to meet the current and future aquatic health needs in Atlantic Canada.

The project will initially create nine direct jobs to run and manage the Centre with total project cost of approximately $5,484,204 and will receive up to $2,100,000 from the Atlantic Innovation Fund over a five-year period. Additional financing for the project will be generated via the cash flow from further research granting agencies and by funding support through AVC's partnerships with government, academia and industry including all four Atlantic Provinces, Fisheries and Oceans Canada, and the region's leading aquatic private sector businesses and associations.

Contact information: Larry Hammell, DVM, M.Sc. AVC Fish Health Coordinator Atlantic Veterinary College University of Prince Edward Island Charlottetown, PE Tel: (902) 566-0728 E-Mail: lhammell@upei.ca

Atlantic Canada Network on Bioactive Compounds University of Prince Edward Island

For the last several years the science department of the University of Prince Edward Island (UPEI), has been actively involved in the research and development of nutraceutical products from various plant materials. The Atlantic Canada Network on Bioactive Compounds will focus on researching and analysing the bioactive compounds extracted from roses (rose hips) and blueberries, which show great commercial potential. Research and development on bioactive compounds in these two areas will generate and improve partnerships among universities, the private sector and other research institutions.

This project will investigate and profile the chemical, bioactivity and antioxidant activity of various bioactive compounds in wild blueberries and Atlantic wild roses. To accomplish this UPEI will develop and optimise post harvest extraction and processing technologies to stabilize and enhance the yield of the desired bioactive compounds such as antioxidants used in a variety of health products such as teas, health foods and supplements. As well, the efficacy and safety of these active compounds in enhancing health or treating illnesses will be investigated.

The "Atlantic Canada Network on Bioactive Compounds", together with the PEI Food Technology Centre's "Atlantic Natural Products Initiative" and other partners, will enable the industry in Atlantic Canada to overcome its current dependency on outsourcing research and technical services throughout North America. This will allow Atlantic Canada to establish a full continuum of technical and testing capabilities essential to commercialise bioactive products and to further utilize and explore the potential uses of other PEI bio-resources.

This project is expected to generate eight full-time R&D positions and develop 11 new technological disclosures, products and/or processes that will involve such private/public sector partners as Fortius Canada Inc., PEI Food Technology Centre, Conner Farms, Naturally Nova Scotia, Oxford Frozen Foods, BioVectra, Dalhousie University, Agriculture and Agri-food Canada, Atlantic Food and Horticultural Research Centre and the PEI Department of Agriculture and Forestry.

This project with total project costs of over $4,357,118 will receive $2,700,000 from the Atlantic Innovation Fund over a five-year period with additional financing from other private and public sources.

Contact information: Dr. Roger Gordon, Ph.D. Dean of Science University Of Prince Edward Island Charlottetown, PE Tel: (902) 566-0382 E-Mail: rgordon@upei.ca

Atlantic Natural Products Development Initiative FTC Enterprises Ltd.

FTC Enterprises Ltd. (PEI Food Technology Centre) of Charlottetown, PEI, is a technology transfer and development facility established to provide technical service support, primarily to the agri-food and seafood processing sectors of Prince Edward Island and Atlantic Canada.

FTC will undertake the "Atlantic Natural Products Development Initiative" with private sector partners, which will focus on research and development (R&D) identified by the private sector. The R & D project will evaluate the benefits of three specific technologies: extraction technologies using new patented eco-friendly solvents; supercritical fluids extraction technologies using carbon dioxide; and ultrasonics to enhance the extraction of compounds. These R&D activities will result in the development of a series of technical processes and products utilizing environmentally friendly extraction technologies. This initiative is designed to tap into a growing global market for natural products by developing a new generation of products derived from Atlantic bio-resources. FTC is very pleased to acknowledge and recognize the important contribution of its technology-provisioning partner, Naturol Inc. This company has been working with FTC to find applications of its technology to enhance Atlantic Bioresources.

Initially, the "Atlantic Natural Products Development Initiative" will use state-of-the-art extraction technologies to improve and develop products/processes including: glucosamine from lobster/crab/shrimp shell waste; extraction of value-added products from seaweed species; a high potency nutraceutical tincture from a new plant source; flavonoids and polyphenol fractions from apple components; and a field device based on high-powered ultrasonics to ensure that the harvesting period produces optimal yield of bioactive components in plants. FTC will pursue partnership arrangements with Naturol Inc. and Thar Designs for their expertise in extractions. Initial projects will be undertaken with the following companies: Naturally Nova Scotia, Naturol Canada Ltd., Nova Scotia Fruit Growers Association, Ocean Nutrition Canada and Ocean Produce International.

The project, with total costs of $7,500,000, will create nine jobs and will receive up to $4,900,000 from the Atlantic Innovation Fund, in addition to funding from other private and public sources.

Contact information: Mary Jane Grant Promotions Officer FTC Enterprises Ltd. Tel: (902) 368-5548 Email: mjgrant@gov.pe.ca

Building R & D capacity for the Canadian Lobster Industry University of Prince Edward Island

The University of Prince Edward Island, through the Atlantic Veterinary College Lobster Science CentreTM (AVC-LSC) will undertake a project that will enhance the R&D capacity for lobster health in Atlantic Canada. The project involves the examination of diseases in lobster and the development of vaccines, diagnostic tools and a lobster research database for the industry.

Researchers will examine host-pathogen interactions in lobsters, the potential impact of diseases such as paramoebiasis on the Canadian lobster resource, as well as the development and delivery of a lobster research database, AAPHIN LOBSTERnet@. The primary innovation is the application of the principles of veterinary medicine to the pre- and post-harvest segments of the lobster fishery. Potential commercial applications include development of therapeutants and diagnostic tools. Overall, the project will help ensure the sustainability of the crustacean sector of the Canadian seafood industry.

The AVC-LSC, located within the University of Prince Edward Island, conducts lobster health research at the request of the lobster industry. The Atlantic Veterinary College, which specializes in fish health and population medicine, is uniquely situated on Canada's Atlantic coast, providing ready access to the lobster industry.

Goals of the AVC-LSC include enhancement of the economic competitiveness of the lobster industry through research on lobster health, in handling, holding and transportation facilities. A second goal is the development of innovations, which can be transferred to the lobster fishery for better marketing and planning decisions. Partners include fisher organizations, processors, exporters, various other private sector companies (ranging from biotechnology to petroleum sectors), and government agencies at both federal and provincial levels.

The project, with total costs of $5,544,227 will receive up to $3,300,000 from the Atlantic Innovation Fund over a five-year period, in addition to funding from other private and public sources.

Contact information: Rick Cawthorn Professor of Parasitology Director and Chief Scientist, AVC Lobster Science Centre Atlantic Veterinary College University of Prince Edward Island Charlottetown, PEI Tel: (902) 566-0584 Email: cawthorn@upei.ca

Gas Turbine Engine Maintenance and Restoration Atlantic Turbines International Inc.

Atlantic Turbines International Inc. (ATI), headquartered at Slemon Park, PEI, is a fast-growing company that repairs and overhauls gas turbine engines for the aviation industry. With support from the Atlantic Innovation Fund, the company will launch a comprehensive research and development initiative known as a "Centre of Repair Excellence". This project will allow ATI to research and develop state-of-the-art engine repair techniques, positioning the company as an industry leader in areas of gas turbine engine maintenance and restoration.

ATI and its parent company, Vector Aerospace Corporation, currently outsource in excess of $150 million in engine repair work and replacement parts every year to companies outside of Atlantic Canada. By establishing a Centre of Repair Excellence to research, develop and use innovative technologies for the restoration of gas turbine components, ATI will be able to relocate some of this outsourced work to its facility here in PEI while, at the same time, reducing costs for the end user. Using the technology that exists in engine restoration, engine components once considered irreparable can now be returned to an "as new" condition for less than the cost of new components.

This project will create and maintain 29 new high-paying positions at the company, which currently employs over 220 people. The economic benefits of this project to Atlantic Canada are significant in terms of increased sales and increased research capacity in the growing aerospace industry.

The project will receive up to $4,000,000 from the Atlantic Innovation Fund over a five-year period, in addition to funding from other private and public sources including Technology Partnerships Canada.

Contact information: John MacDougall President Atlantic Turbines International Inc. Slemon Park, PEI Tel.: (902) 436-1333 Email: jmacdougall@ati.ca

Justice Knowledge Network (JNK) Holland College

Holland College is PEI's only community college and has been recognized as one of Canada's most innovative and dynamic colleges. Areas of excellence include the Atlantic Tourism and Hospitality Institute, the Atlantic Welding & Fabrication Institute, the Canadian Golf Academy and the Aerospace & Industrial Technology Centre. The College also has extensive experience in Justice training through its affiliate, the Justice Institute of Canada Centre of Excellence (JIOC). The JIOC provides training in law enforcement, correctional services and police cadet training.

The Justice Knowledge Network (JKN) initiative is a five- year R&D project to create a comprehensive network of groundbreaking services, products, tools and technologies for law enforcement/correctional services organizations and their members. The project will focus on the emerging market of justice training by researching and developing new IT solutions and technologies. JKN will develop a series of secure, specific skill/knowledge enhancing platforms and working modules. JKN will create a knowledge database; which participating individuals and police organizations will access. The ultimate goal for the database and portal will be to give police personnel access to research and applications specialists, which will enable them to communicate with colleagues across North America in a secure, real time environment. The JKN project will enhance a cluster of justice services, which are currently working in other aspects of the justice system on PEI.

This project is expected to generate 24 full time R&D positions and three new products that will involve such private/public sector partners as Canadian police organizations, Canadian Association of Police Educators, the Canadian Foundation for Innovation (CFI), Université de Moncton, Acadia University, Sheridan College-Visualization Design Institute (ON), E-com Inc. (Moncton, NB) and Aliant / BCE Inc. (PEI).

The project with total R&D costs of $14,900,000 will receive $6,500,000 from the Atlantic Innovation Fund over a five-year period with additional financing generated from anticipated revenues, Canadian police organizations, CFI, Canadian Association of Police Educators and partner contributions.

Contact information: Dr. Alex (Sandy) MacDonald, Ph.D. Executive Director Holland College Charlottetown, PE Tel: (902) 566-9571 E-Mail: smacdonald@hollandc.pe.ca