Ritz says Advanced Foods and Materials Canada is getting $500,000.
The company also produces micro-nutrients for food and health products.
Ritz says there's potential to turn wheat straw into a value-added product used in pharmaceuticals, the oil and gas sector and in mining.
He says the biomaterials are worth thousands of dollars a tonne and a lot of that money would flow back to farmers.
He says the investment is a good way to develop processing across Western Canada.
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