Canada announces $2.8m for forestry support in Atlantic Canada

From the Springboard Content Lab

The Government of Canada has announced $2.8 million in forestry support for projects in New Brunswick and Nova Scotia.

These projects will expand the use of mass timber in construction; support Indigenous groups and forestry businesses; increase manufacturers’ capacity to add more value to wood products; and diversify Canada’s forest products and their export markets.

This is part of a $500-million national forestry program announced by the Minister of Energy and Natural Resources Tim Hodgson.

$2.8 million in forestry support

The forest sector is a lifeline for communities across the country and an important pillar of Canada’s economy. In the face of unjust U.S. trade measures, the Government of Canada is taking decisive action to support the forest sector, protect workers and their jobs, and give Canadian companies the stability they need to weather short-term shocks and retool for a stronger, more diversified future.

“Canada’s forests are more than a resource. They are the foundation for good jobs, affordable housing and sustainable economic growth. Today’s announcement makes sure that the forest sector remains a pillar of national strength, an economic engine for communities across the country and a major exporter of our products to the world. This is how we protect what we have while building stronger for tomorrow.”

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

Seven projects receive $2.8-million in forestry support

Investment in Forest Industry Transformation Program

Project name: Nova Scotia Low-Carbon Fuel Oil Facility
Recipient: Vyterra Renewables Nova Scotia Ltd.
Location: Enfield, Nova Scotia
NRCan Funding: $1,746,000
Description: The objective of this project is to accelerate the final engineering and permitting activities for the development of Vyterra Renewables’ greenfield low-carbon fuel oil (LCFOTM) facility in Enfield, Nova Scotia, in support of a larger capital expenditure project to support the construction of the facility. Upon completion of this project, Vyterra Renewables aims to start the construction of this new commercial RTP® clean fuel facility to convert 140,000 green tonnes per year of forest and sawmill residues to produce 40 million litres per year of LCFOTM. When operating, the facility will supply clean fuel to large-scale energy users to reduce reliance on imported fuels and decrease carbon emissions by up to 65,000 metric tonnes of CO2 equivalent each year while supporting the forest industry and contributing to economic growth and development. This project represents an estimated capital value of $177 million and intends to create around 30 new full-time jobs.

Green Construction through Wood

Project name: 2×3 B-I-B (Building in a Building)
Recipient: University of New Brunswick
Location: Fredericton, New Brunswick
Funding amount: $500,000
Description: The Proponent is designing, constructing and carrying out testing on a small container-type house with prefabricated walls, floors, roofs, beams and columns made from 2×3 lumber in the form of cross-laminated timber, glue-laminated timber, nail-laminated timber and light-frame walls with wood fibre as insulation materials. The proponent is also conducting a comprehensive cradle-to-grave life-cycle analysis to evaluate the environmental impact of the structure and to develop a specific life-cycle inventory, accompanied by a life-cycle cost assessment to provide a comprehensive understanding of the project’s sustainability.

Indigenous Forestry Initiative 

Project name: HWA Treatment Project
Recipient: Ulnooweg Education Centre
Location: Millbrook, Nova Scotia
Funding amount: $296,920
Description: Ulnooweg Education Centre (UEC) is leading a hemlock woolly adelgid (HWA) treatment plan for the lands on the Asitu’lisk property, which involves enacting an injection treatment to the hemlocks on this property. This funding also allows the proponent to provide a service to other woodlot owners to protect their hemlocks from the HWA, providing an opportunity to generate revenue. The project building will draw on the strengths of both Indigenous and Western ways of knowing, to tackle biodiversity and climate change risks associated with the loss of the eastern hemlock due to HWA.

Project name: New Brunswick Integrated Forestry Development Initiative
Recipient: Wolastoqey Nation in New Brunswick
Location: Fredericton, New Brunswick
Funding amount: $200,000
Description: The Wolastoqey Nation in New Brunswick will host a series of knowledge-sharing and information sessions to support the development of land use and forestry management plans for their forested lands. These sessions will also inform the creation of Traditional Land Use maps, which will contribute to sustainable forest management planning in the province in partnership with industry. The initiative will also include species surveys conducted through desktop analysis, followed by field-based ground-truthing to validate the findings.

Project name: John W. Jamer Ltd. Business Plan Project
Recipient: Wolastoqey
Location: Perth-Andover, New Brunswick
Funding amount: $50,000
Description: The proponent is developing an updated business plan for the John W. Jamer Ltd. production facility to plan for upgrades and expanded capacity to supply kiln-dried lumber to the Neqotkuk First Nation for housing. The mill upgrades will increase production capacity and improve lumber quality, strengthening Neqotkuk’s ability to supply materials for community housing and building projects while creating new employment opportunities. Expanded capacity will enable the proponent to supply other Indigenous communities in New Brunswick, supporting their housing needs and generating additional revenue.

Global Forest Leadership Program

Project name: Global Forest Leadership Program FY2025/26 – New Brunswick Forest Products Association Inc. (Forest NB)
Recipient: New Brunswick Forest Products Association Inc. (Forest NB)
Location: Fredericton, New Brunswick
Funding amount: $45,000
Description: The proponent is aiming to reduce international trade barriers, strengthen global engagement, and enhance recognition of Canadian sustainable forest products, including by undertaking a baseline export diversification study to assess New Brunswick’s forest product exports to non-U.S. markets, identify priority offshore regions and evaluate certification, logistics and sustainability requirements.

Project name: Global Forest Leadership Program FY2025/26 – Maritime Lumber Bureau (MLB)
Recipient: Maritime Lumber Bureau (MLB)
Location: Amherst, Nova Scotia
Funding amount: $28,750
Description: The proponent is initiating a technical trade and education information portfolio that will promote the products, practices and technical innovations of Atlantic Canadian industry to the global market.

Quick facts on forestry support in Canada

To make it easier for forest sector businesses and employees to navigate and apply to federal programs, NRCan has launched a new single-window pathfinding service, which includes a new website with information on all programs available to forest sector businesses and direct access to NRCan experts.

Canada’s forest sector is a major economic driver, supporting nearly 200,000 workers, including over 11,000 Indigenous people and contributing more than $20 billion to our GDP.

The forest sector in the Maritime provinces supports almost 19,000 jobs and provides nearly $2 billion to real GDP (1.6 percent of total GDP for the region).