CONNECTING THE CHAIN INCREASING CIRCULARITY IN UPSTREAM FOOD SYSTEMS - COIL CIRCULATE COLAB CHALLENGE

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CONNECTING THE CHAIN INCREASING CIRCULARITY IN UPSTREAM FOOD SYSTEMS - COIL CIRCULATE COLAB CHALLENGE
Connecting the chain
Increasing circularity in
upstream food systems

COIL Circulate CoLab Challenge
CONNECTING THE CHAIN INCREASING CIRCULARITY IN UPSTREAM FOOD SYSTEMS - COIL CIRCULATE COLAB CHALLENGE
Contents
What is COIL?..................................................................................................................1

The opportunity ............................................................................................................2

Disrupting wasteful linear food chains
with circular innovations .........................................................................................2

But where does the most food loss and waste happen?..................3

Food Material Flow Analysis...................................................................................4

COIL Circulate CoLab Challenge........................................................................5

COIL Circulate CoLab Challenge #1:
Circularity in the food processing and manufacturing chain.........6

Timeline................................................................................................................................10

For more information..................................................................................................10

Frequently asked questions..................................................................................11

  Accessible formats available by contacting
  519-822-1260 extension 3671 or TTY 519-826-9771.

                                                                                                                             COIL • Connecting the chain: Increasing circularity in upstream food systems
CONNECTING THE CHAIN INCREASING CIRCULARITY IN UPSTREAM FOOD SYSTEMS - COIL CIRCULATE COLAB CHALLENGE
What is COIL?
Circular Opportunity Innovation Launchpad (COIL) is an
innovation platform and activation network fostering, proving
and scaling transformative solutions to move Canada toward
a sustainable, circular economy. COIL is doing this through
business incubation, acceleration and collaboration programs,
innovation challenges, and large-scale demonstration projects.

COIL is a circular economy initiative of the City of Guelph in
collaboration with the County of Wellington and community
collaborators. COIL is funded by the Federal Development
Agency for Southern Ontario. Projects across southern Ontario
are eligible for funding under COIL.

COIL • Circulate CoLab Challenge                                 1
CONNECTING THE CHAIN INCREASING CIRCULARITY IN UPSTREAM FOOD SYSTEMS - COIL CIRCULATE COLAB CHALLENGE
The opportunity
Disrupting wasteful linear food                                                                                        Food Recovery Hierarchy
chains with circular innovations                                                                                     Reduce waste at the source

                                                                                              Mo
                                                                                                st P
The food system is foundational to our society. It feeds us and                                                    Find new value for by-products

                                                                                                    ref
                                                                                                       err
provides jobs for millions of Canadians across a complex and

                                                                                                          ed
interconnected supply chain. Food production, processing and                                                       Support food security programs
consumption directly tie each of us to our environment, and
                                                                                                                              Feed livestock
food is a central component of our social and cultural lives.

Our current food system is predominantly designed around a                                                                    Industrial uses
linear make-take-dispose model, which relies on the constant
                                                                                                                                Composting
input of virgin materials, with relatively little reuse or revalorization

                                                                                                                       Lea
                                                                                                                          st P
of materials or byproducts after their initial use. This linear                                                                    Landfill
                                                                                                                                      (last

                                                                                                                              ref
system is wasteful, has negative impacts for our environment                                                                         resort)

                                                                                                                                 err
and, as the global population grows, is unsustainable.

                                                                                                                                    ed
Presently, 58 per cent1 of all food produced in Canada is lost or
wasted while 17 per cent2 of Canadians report not always having                            While complex, the food system is also ideally structured to be
access to enough food. The estimated value of avoidable food                               redesigned around circular economy principles. When food and
loss and waste in the processing and manufacturing segment                                 organic waste is diverted from landfill, innovative processes
alone is approximately $21 billion annually.3 Globally the food                            can turn those materials into energy, nutrients for agriculture,
system is responsible for approximately 26 per cent4 of global                             animal feed or new consumer products.
greenhouse-gas emissions.

1,2,3,4 Nikkel, L., Maguire, M., Gooch, M., Bucknell, D., LaPlain, D., Dent, B., Whitehead, P., Felfel, A. (2019). The Avoidable Crisis of Food Waste: Roadmap; Second Harvest
and Value Chain Management International; Ontario, Canada.

2                                                                              COIL • Connecting the chain: Increasing circularity in upstream food systems
But where does the most food
loss and waste happen?
While consumers and retail generate a significant amount of
food loss and waste, a recent food material flow analysis in
Guelph and Wellington County found that the vast majority
of food loss and waste occurs upstream during production,
processing and manufacturing activities.5 In Guelph and
Wellington, over 31 kilotons6 of food are lost during storage and
packaging, and over 23 kilotons7 are planned processing loss
(i.e. byproducts or coproducts that typically end up in landfill).

Food loss and waste is a systems issue. Ingrained economic
incentives and cultural attitudes across the supply and
consumption chains have created the current, wasteful status
quo. To change this, we need system-level solutions that
disrupt linear practices and make the business case for why
the future economy needs to be circular.

5,6,7   Food and Food Waste Flow Study; Dillon Consulting and Metabolic, 2021.

COIL • Circulate CoLab Challenge                                                 3
Food Material Flow Analysis

             PRODUCTION                    PROCESSING                                          MANUFACTURING                                    DISTRIBUTION                 RETAIL/WHOLESALE                HOUSEHOLDS                            HOUSEHOLDS WASTE                                                     GUELPH-WELLINGTON
            (229.96 ktons)                (188.26 ktons)                                        (153.08 ktons)                                  (138.62 ktons)                  (88.17 ktons)                (83.56 ktons)                            COLLECTION                                                        END OF LIFE
                                                                                                                                                                                                                                                      (19.3 ktons)                                                      (35.8 ktons)
                                                                                                                                                                    19.7 ktons                  18.6 ktons
                                                                                                                                   29.5 ktons
                             38.7 ktons                                           31.0 ktons
     Fruits - Excluding                                                                                                                                             14.5 ktons                  13.5 ktons
     Wine (51.2 ktons)                                                                                                                                                                                                       Households avoidable                              Households Separated
                                                                                                                                                                                                                              waste (13.0 ktons)                             Organic Waste (10.4 ktons)                 Composting
                                                                                                                                                                    12.3 ktons                  11.7 ktons                                                                                                              (10.4 ktons)
                                                                                                                                   21.0 ktons                                                                                    Households
                                                                                  24.7 ktons                                                                                                                                                                                     Households MSW
                                                                                                                                                                    10.3 ktons                  19.0 ktons                    unavoidable waste
                                                                                                                                                                                                                                                                                   (8.9 ktons)
                                                                                                                                                                                                                                  6.3 ktons)
                             37.4 ktons                                                                                                                              9.9 ktons                   9.6 ktons
                                                                                                                                   18.5 ktons
                                                                                                                                                                     9.1 ktons                   8.6 ktons
    Cereals - Excluding                                                           19.5 ktons                                                                         4.6 ktons                   4.5 ktons
     Beer (44.4 ktons)                                                                                                                                               3.2 ktons                   3.0 ktons
                                                                                                                                   15.5 ktons
                                                                                                                                                                                                                                                LOCAL BUSINESSES FOOD
                             23.5 ktons                                           18.8 ktons                                                                                                                                                      WASTE (16.5 ktons)
                                                                                                                                   15.0 ktons                                                                                                           Retail/Wholesale/
                                                                                                                                                                                                                                                        Distribution Waste
           Vegetables                                                                                                                                                                                                                                       (7.6 ktons)
          (32.2 ktons)                                                            17.4 ktons                                       13.7 ktons
                             22.3 ktons
                                                                                                                                                                                                                                                         HRI avoidable                                                  Landfill
                                                                                                                                    7.1 ktons                                                                                                                                                                           (25.4 ktons)
                                                                                                                                                                                                       HOTELS,RESTAURANTS,                              waste (6.4 ktons)
         Starchy Roots       17.3 ktons                                           14.4 ktons                                                                                                             AND INSTITUTES
           (23.7 ktons)                                                                                                             4.8 ktons
                                                                                                                                                                                                           (47.48 ktons)                                HRI unavoidable
                                                                                   7.2 ktons                                        3.1 ktons                                                                                                           waste (2.5 ktons)
                                                                                                                                                                                                10.0 ktons                                                                                                                1%
                                                                                                                                                                                                                                                                                             1%                      2%
                             17.3 ktons                                                                                                                                                                                                                                                 2%
                                                                                                                                    2.9 ktons                                                    7.3 ktons                                                                            2%                           2%
     Meat (23.4 ktons)                                                             5.2 ktons                                                                                                     6.2 ktons                                                                                                           4%
                              7.4 ktons                                                                                             2.1 ktons                                                                                                                                           8%                 27%
                                                                                                                                                                                                 5.4 ktons                                                                                                         5%
                                                                                   3.5 ktons                                                                                                                                       Cereals - Excluding Beer    Treenuts                                                                  34%
                                                                                                                                    1.8 ktons                                                    5.1 ktons
                                                                                                                                                                                                 4.7 ktons                         Fruits - Excluding Wine     Pulses                12%                          10%
       Milk - Excluding       6.9 ktons                                                                                                                                                                                            Vegetables                  Spices
                                                                                   3.2 ktons                                        1.4 ktons                                                                                                                                                 Avoidable                  Unavoidable
    Butter (18.7 ktons)                                                                                                                                                                                                            Starchy Roots               Eggs
                              3.5 ktons                                                                                                                                                                                            Meat                        Animal fats                                  24%
                                                                                   2.2 ktons                                        1.2 ktons                                                                                                                                                                      16%
                                                                                                                                                                                                                                   Vegetable Oils              Fish, Seafood            17% 15%           26%
        Vegetable Oils        3.3 ktons                                                                                                                                                                                            Milk - Excluding Butter     Sugar & Sweeteners                                                 22%
                                                                                   1.9 ktons                                        1.0 ktons
           (8.8 ktons)                                                                                                                                                                                                             Stimulants                  Oilcrops
                              2.4 ktons
   Sugar & Sweeteners                                                              1.6 ktons                                        0.1 ktons
            (7.5 ktons)       2.3 ktons
                                                                                                                                                                                                                                                                                                    WITHIN GUELPH-WELLINGTON
                                                                                   1.3 ktons
      Eggs (3.7 ktons)
                              2.3 ktons
Animal fats (3.5 ktons)                                                            1.2 ktons
                              1.8 ktons

Stimulants (3.2 ktons)        1.5 ktons                                            0.1 ktons

  Treenuts (2.7 ktons)        0.2 ktons
       Fish & Seafood                                                                                               Manuf. planned Loss
           (2.5 ktons)                                                                                                  (8.2 ktons)
    Pulses (2.0 ktons)                                                                                           Manuf. unplanned and post-
                                                                                                                 processing loss (6.2 ktons)                                                                                                                                                                            SUPPLY CHAIN
    Spices (2.0 ktons)                                                                                                                                                                                                                                                                                                  END OF LIFE
                                                                   Processing planned                                                                                                                                                                                                                                   (91.3 ktons)
  Oil crops (0.2 ktons)                                             loss (23.1 ktons)                                                                                                                                                                                                       1%1%

                                                                                                                                                                                                                                                                                             4%
                                                                   Unplanned and post-                                                                                                                                                                                                     4%              25%
                                                               processing loss (12.1 ktons)                                                                                                                                                                                            9%
                                                                                                                                                                                                                                                                                                                        Unknown (likely
                                                                                                                                                                                                                                                                                                Supply                  landfill) (91.3 ktons)
                                                                                                                                                                                                                                                                                      11%     Chain Food
                                                                                                                                                                                                                                                                                                Waste
                                          Storage/packaging                                                                                                                                                                                                                                                 24%
                                           loss (31.2 ktons)                                                                                                                                                                                                                                  15%

                                           Production loss
                                            (10.5 ktons)

    4                                                                                                                                                        COIL • Connecting the chain: Increasing circularity in upstream food systems
COIL Circulate CoLab Challenge
By 2024, COIL will fund five industrial-scale circular economy    At the end of the twelve week process, teams will pitch their
demonstration projects in the food and environment                tested idea to our evaluation board for the potential to receive
sectors. We’re looking for projects that create new circular      up to $100,000 in additional project funding to scale their
collaborations between organizations and that test, prove         solution as one of five industrial-scale demonstration projects.
and scale innovative, circular supply chain models capable of
                                                                  We’re looking for teams of companies that want to be Canadian
transforming an industry, or even creating new ones.
                                                                  circular economy leaders. Beyond project funding and mentorship,
To find projects capable of disrupting the status quo, COIL       participants in the Circulate CoLab will be promoted across
is holding three Circulate CoLab innovation challenges. Each      the COIL and Our Food Future networks, including at national
challenge will focus on a different segment of the supply chain   and international forums. Lessons learned from each CoLab
in either the food or environment sectors.                        prototype and demonstration project will be documented and
                                                                  shared to help expand Canada’s circular economy.
We are looking for teams of three to seven companies or
organizations to propose ideas for how they would work
together to reduce waste and emissions, increase productivity
and shift a typically linear business model toward a circular
approach that’s environmentally and financially sustainable
over the long term.

From the applications received, three teams will be invited
to participate in the Circulate CoLab (CoLab), a twelve week
process that gives each team access to up to $20,000 in
funding to research, test and prototype their idea along with
support from mentors and circular economy experts across
COIL’s urban-rural testbed.

COIL • Circulate CoLab Challenge                                                                                                     5
COIL Circulate CoLab Challenge #1:
Circularity in the food processing and manufacturing chain
This challenge focuses on the components of the food                                       We want to know if you have a:
system between production and consumption: processing
                                                                                           •   Waste-reduction idea that will improve the current
and manufacturing, distribution and foodservice, grocery and
                                                                                               Canadian food system,
hospitality. Sixty-one per cent8 of the food produced in Canada
is lost or wasted along these three segments.                                              •   Food-loss prevention innovation that will provide a long-
                                                                                               term benefit,
                                                                                           •   New use for the excess, lost or wasted organic material
                                                                                               along your supply chain,
                                                                                           •   Better way to connect those who have food waste with
                                                                                               those who can use it,
                                                                                           •   New process to make recyclable packaging using organic
                                                                                               matter that would otherwise go to waste, and/or
                                                                                           •   New process or technology that improves food use
                                                                                               predictability in large institutions.
                                                                                           How can your team work with new technologies, partners,
                                                                                           business models or processes to reduce avoidable food waste
                                                                                           and/or generate new value or products from organic materials
                                                                                           (i.e. unavoidable food waste, byproducts/co-products) that
                                                                                           would otherwise be end-of-life?

8 Nikkel, L., Maguire, M., Gooch, M., Bucknell, D., LaPlain, D., Dent, B., Whitehead, P., Felfel, A. (2019). The Avoidable Crisis of Food Waste: Roadmap; Second Harvest and
Value Chain Management International; Ontario, Canada.

6                                                                              COIL • Connecting the chain: Increasing circularity in upstream food systems
Challenge process and application
Step 1: Determine eligibility                                                       Step 2: Apply

Our food-system challenge is open to all Canadian                                   All applications must be submitted through COIL’s central
entrepreneurs and organizations (for-profit or not-for-profit). It                  application portal.
doesn’t matter if your current work is focused within the food
                                                                                    You will be asked to provide:
system or not. Ideas can be inspired from any industry, sector
or system.                                                                          •    a high-level outline of the problem the project team is trying
                                                                                         to solve,
All demonstration projects that receive funding must be
located in southern Ontario.9                                                       •    the proposed solution,
                                                                                    •    the anticipated impacts of the solution (e.g. volume of waste
We strongly encourage and value submissions from businesses
                                                                                         diverted, carbon emissions avoided, jobs created, etc.),
owned by women, visible minorities, Indigenous peoples and
people with disabilities.                                                           •    how the solution could be tested and prototyped within a
                                                                                         twelve-week window and anticipated impacts of the prototype,
                                                                                    •    a pathway for how a validated prototype approach could be
                                                                                         scaled at least five times if selected as a full demonstration
                                                                                         project,
                                                                                    •    background details and experience of the collaborators,
                                                                                    •    proposed matching contribution from project team at the
                                                                                         prototype/demonstration project phases (cash and in-kind),
                                                                                         and
                                                                                    •    any additional areas of consideration (e.g., partnerships with
                                                                                         post-secondary institutions, anticipated intellectual property
                                                                                         or jobs created, social impacts, etc.).
                                                                                    Applications must be received by Friday, October 15, 2021.

9 Note: Non-Canadian organizations are eligible to participate as members of CoLab project teams; however, per FedDev Ontario funding guidelines, all project funding
must be primarily directed towards Canadian enterprises. While some project elements could be located elsewhere, project elements receiving funding must be primarily
located in southern Ontario.

COIL • Circulate CoLab Challenge                                                                                                                                   7
Step 3: Evaluation                                                      Step 4: Circular Innovation CoLab (prototyping)

Each submission will be evaluated by an experienced review panel        Three teams will be selected to participate in an twelve-week
based on a range of criteria aimed at identifying projects that can     Circular Innovation CoLab where they will:
have a significant and long-term impact on the food system.
                                                                        •   Receive $20,000 in project funding to expand and
Evaluation criteria:                                                        prototype their solution,

•   Proposal Innovation: novelty of the approach, use of                •   Have access to mentoring, circular economy training and
    technology, outside-the-box collaborations                              networking,

•   Suitability for the CoLab Challenge Process: project                •   Receive support and connections from across COIL’s
    feasibility within allotted time/budget, experience, fiscal and         Urban-Rural Test-Bed Network, and
    innovation capacity of project proponents                           •   Prepare a pitch-presentation to compete for up to
•   Potential Economic Impact: realistic immediate pathway                  $100,000 in additional funding.
    to scaling to demonstration project, potential for new jobs,        During the CoLab process, each team will work with COIL
    products or intellectual property                                   advisors who will provide guidance and contacts to help the
•   Potential Impact on the Industry: increased productivity,           team increase the impact of their project and better position it
    sustainability of business model, scalability/replicability of      for the final pitch.
    approach, potential to influence systems change                     Those accepted to participate in our Circulate CoLab will be
•   Potential Environmental Impacts: impact of waste and/or             notified no later than end of business on Friday, October 29, 2021.
    emissions reduction or prevention
•   Potential Social Impacts: potential for social benefits;
    diversity and inclusion opportunities

8                                                              COIL • Connecting the chain: Increasing circularity in upstream food systems
Step 5: Final pitch                                               Step 6: Demonstration project (project scaling)

Following the twelve-week CoLab process, teams will pitch         Over the next 12 months, the winning team will work with COIL
their solution and prototype to an expert evaluation committee.   to embed their refined solution into their broader supply chain,
At least one team will be selected to receive up to $100,000      showcasing how it will positively and practically affect long-
in additional project funding to expand their solution into an    term change through a demonstration project.
industrial-scale demonstration project.
                                                                  All funded demonstration projects are intended to showcase
Projects not selected as full demonstration projects may still    the real-world business potential of the circular economy.
have the opportunity for additional project funding under COIL    Funding recipients will be expected to support a reasonable
on a case-by-case basis depending on the success of the           range of communications activities to highlight the project and
prototype and specific requirements of the project.               promote the circular economy.

COIL • Circulate CoLab Challenge                                                                                                 9
Timeline
                                                 2021                                     2022                              2023
                                         A   S    O     N   D    J   F    M    A     M    J    J   A    S    O    N    D    J    F
Call for Submissions
August 25 to October 15, 2021

Semi-finalists announced
October 29, 2021

Circulate CoLab
November 08, 2021 to January 21, 2022

Pitch week
January 24 to 28, 2022

Finalist announced
January 28, 2022

Demonstration project
February 07, 2022 to February 03, 2023

For more information
coil.eco/colab

info@coil.eco

10                                                      COIL • Connecting the chain: Increasing circularity in upstream food systems
Frequently asked questions
I have a great idea but I haven’t found two                             were able to demonstrate through the CoLab prototype. We
                                                                        hope and anticipate teams will include a mix of large, medium
other partners who want to participate.
                                                                        and small enterprises and/or not-for-profits. Teams of only small
Can I still submit an application?                                      businesses can absolutely apply; however, small enterprises, like
To develop projects capable of reaching industrial scale, we require    all participants, will need to demonstrate a realistic pathway to
between three to seven businesses or not-for-profit organizations.      scale the impact of their CoLab prototype at least five times.
If you have an idea, but are unable to find collaborators, please
contact our COIL team (info@coil.eco) to see if we can help.
                                                                        What is the expected time commitment
                                                                        for organizations participating in the
What if I operate a closed-loop supply                                  CoLab process?
chain already?                                                          Time commitments will depend on the nature of each project
If you have a highly closed-loop supply chain that you want             and structure of the project team and collaborators. Our
to innovate, please email us to discuss your project idea.              CoLab will kick off with a one-day onboarding session which
Exceptions may be possible if there is strong potential for an          will establish the workplan for each team, including timelines
interesting project with potential to scale. We may also be able        for developing a project budget. Beyond the onboarding, COIL
to connect you with potential partners.                                 will coordinate regular one-hour calls with each team over the
                                                                        twelve-week process.
How do you define “industrial-scale”
demonstration projects? Is this just                                    How can the innovation challenge and
aimed at large businesses or can groups                                 demonstration project funds be used?
of small businesses apply?                                              Prototype ($20,000) and demonstration project (up to
                                                                        $100,000) funds can be used only for eligible activities and
We are looking to help create solutions or business models that
                                                                        costs, such as research, hiring consultants or experts, product
can scale to transform an industry or supply chain. We have
                                                                        creation and design, development or implementation of new
loosely defined “industrial-scale” to mean projects that are able
                                                                        technologies, purchasing of new equipment, labour, and many
to realistically achieve at least five times the impact at scale they

COIL • Circulate CoLab Challenge                                                                                                         11
other categories. Each team will work with a COIL advisor to        Do projects or all project components
review their proposed expenditures and ensure they meet our
eligibility criteria at the start of the process.
                                                                    need to be located in southern Ontario?
                                                                    Projects must be primarily located in southern Ontario. While
Are there requirements for matching                                 some project elements/collaborators across a supply chain
contributions from project team                                     may be located outside of Ontario, all project funding must be
members?                                                            primarily spent for components in southern Ontario. Please
                                                                    contact our COIL team (info@coil.eco) if you have a specific
Participating organizations are not required to provide matching    scenario you would like to discuss.
contributions. However, COIL aims to develop solutions that
can be scaled and make a significant impact, and matching           Who will own project intellectual property?
contributions can help broaden that impact. Therefore, our
                                                                    Participating businesses will own all IP coming out of COIL
application form and final CoLab pitches ask for details on
                                                                    CoLab prototypes and demonstration projects. As these
participant company contributions (cash and/or in kind), which
                                                                    projects will be collaborations between multiple businesses, it
may factor in project selection.
                                                                    will be the responsibility of those businesses to agree on which
Can multinational companies participate                             IP elements belong to each project participant.

or is this only for Canadian-owned
companies?
Multinational companies can participate in project teams;
however, project funding must be primarily directed to Canadian-
owned firms. Please contact our COIL team (info@coil.eco) if you
have a specific scenario you’d like to discuss.

12                                                         COIL • Connecting the chain: Increasing circularity in upstream food systems
COIL • Circulate CoLab Challenge
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