The biorefinery is a key concept used in the strategies and visions of many industrial countries. The potential for Canadian biorefineries based on lignocellulosic forest and agricultural residues is examined. The sector is described in terms of research interests, emerging companies, and established corporate interests. It is found that the Canadian biorefining sector currently has an emphasis on specific bioproduct generation, and the process elements required for a true sugar-based process are in the research phase. A Canadian national strategy should focus on increasing forest industry participation, and increasing collaboration with the provinces, particularly in western Canada.