Government of Canada invests in Atlantic Canada’s forest sector

On February 25, 2026, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced $2.8 million in funding for seven forestry 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.

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 (LCFO^TM) 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 LCFO^TM. 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: 2x3 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 2x3 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: John W. Jamer Ltd. (Tobique First Nation)
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.