Budget 2025 — Turning Nova Scotia’s Fibre Advantage into Projects

This guest article was written by Royden Trainor, Executive Director of GreenspringBio Innovation.

Something changed in Ottawa this spring. The federal budget didn’t just talk about a clean economy—it delivered practical tools that lower risk, shorten timelines, and make real projects financeable. For Nova Scotia’s forest sector, that shift lands squarely on our strengths: reliable fibre, mill know-how, and a network of communities ready to turn residues into reliable heat, power, fuels, and high-value wood products.

As outlined in Greenspring’s recent press release, the throughline is clear: targeted investment credits, clearer procurement signals, and financing that closes the last mile. These measures reflect priorities advanced jointly with Forest Nova Scotia, so mills, Indigenous partners, municipalities, and builders can move from proposals to purchase orders with confidence.

“This budget answers the sector’s practical asks—credits for waste biomass, procurement that values Canadian wood, and finance that closes the last mile. With Forest Nova Scotia and our partners, Greenspring will turn these wins into projects that create rural jobs and durable energy resilience.” — Royden Trainor, Executive Director, GreenspringBio Innovation

Here at home, the sector remains a core economic engine. In 2022, forestry generated about $1.8 billion in total economic impact, supported more than 6,400 jobs, and contributed roughly $171 million in provincial and federal tax revenues. Exports exceeded $600 million, and earnings are well above the provincial average—real advantages for rural communities. With targeted growth, analyses suggest the sector can approach $3 billion in annual contribution.

On the policy side, several changes move projects from interesting to investable. The Clean Technology Investment Tax Credit now explicitly covers electricity and heat from waste biomass—retroactive to November 21, 2023—improving the math for mill-site combined heat and power and for institutional bioheat and district energy. The Clean Electricity ITC and a clarified role for the Canada Growth Fund allow clean-power projects to pair investment credits with CGF participation. SR&ED modernization lifts the enhanced 35% limit to $6 million and restores capital eligibility—alongside accelerated capital cost allowance and immediate expensing, including for new manufacturing and processing buildings.

Demand signals are strengthening as well. The Buy-Canadian procurement approach and the Build Canada Homes push prioritize Canadian lumber and mass timber, rewarding Nova Scotia producers and prefab builders. A softwood support package (BDC loan guarantees and renewed NRCan programming) adds resilience, the Trade Diversification Corridors Fund targets logistics pinch points, and workforce funds help retain and recruit talent. For investors, Canada Growth Fund’s carbon contracts-for-difference and work on post-2030 industrial price clarity create the policy predictability that underwrites capital-intensive decarbonization.

Crucially, these federal moves align with the Province’s priorities around natural-resources growth, innovation, and the bioeconomy. You can see momentum in real time: the opening of the Neptune BioInnovation Centre, the announcement of Nova Sustainable Fuels, and a growing roster of opportunities now lining up behind clearer rules, stronger procurement, and bankable finance. This is a strategic alignment of purpose and priorities between industry and government—and it’s tailor-made for Nova Scotia’s strengths.

A special note on Neptune: the new labs in Dartmouth are world-class and designed to be genuinely deployment-oriented—linking discovery, piloting, and scale-up. Developed in partnership with the Verschuren Centre, Neptune equips Nova Scotia with leading-edge analytical and pilot infrastructure that shortens the path from concept to commercial line. Together, Neptune and the Verschuren Centre form a powerful “lab-to-plant” bridge for the province’s burgeoning bio and clean-growth economy.

Equally important is the Verschuren Centre in Sydney, Cape Breton—now Canada’s anchor for pilot-to-demo biomanufacturing. The Centre operates BSL‑1 and BSL‑2 labs, a fully equipped analytical suite, and a bioprocess pilot plant scaling to 1,000 L today with a pathway toward 10,000 L, plus a 6,000 L marine extraction line—capabilities that are unique in the country. Recent provincial and ACOA investments have expanded reactor capacity and automation, while new workforce programs with the community colleges are training the technicians industry needs. This combination—assets, people, and market pull—lets companies de‑risk here and stay here.

Nova Scotia is uniquely well-positioned. Our sawmills generate steady flows of chips, bark, and shavings—reliable inputs for bioheat and CHP near large heat loads on campuses, in health facilities, and in municipal systems. Mass timber and off-site construction can ride the housing wave with faster builds and lower embodied carbon. Deep-water ports and rail at integrated sites enable co-located bioproduct lines. Indigenous loan-guarantee pathways open partnership-based ownership models. And with SR&ED capital back in scope, mills can pair pilot lines with shop-floor innovation—moving from lab bench to line of business.

This direction is echoed nationally. Advanced Biofuels Canada welcomed targeted production incentives that diversify and grow domestic low-emission fuels. The Canadian Renewable Energy Association underscored that finalizing clean-power credits and grid measures sends the investment signal industry needs. Independent voices—the Pembina Institute and the Canadian Climate Institute—said the package sets the stage for predictable, climate-competitive growth. And Ottawa’s Buy-Canadian policy is a direct demand pull for Canadian lumber and mass timber, while mainstream coverage highlighted the federal push to spur domestic biofuels alongside regulatory streamlining.

Looking forward, the bioeconomy is a global growth story measured in the trillions. International analysts put the circular bioeconomy as high as US$7.7 trillion by 2030; Canada’s potential share is estimated at $150–$240 billion annually, driven by forest-based biomaterials, bioenergy, and low-carbon fuels. For Nova Scotia, even a modest fraction translates into meaningful gains in GDP, exports, and rural incomes—especially if we scale mass timber, institutional bioheat/CHP, and bioproduct lines at integrated mill complexes.

“Nova Scotia’s forest sector has the feedstock and the know-how; Budget 2025 brings the missing pieces—clarity on biomass credits, Buy-Canadian demand, and scale-ready finance. Greenspring will lead where we can and partner where we should, so residues become reliable heat and power, mass-timber meets housing needs, and rural communities see steady jobs.” — Royden Trainor, Executive Director, GreenspringBio Innovation

Recent proof points:

• Environmental Assessment registered (Class 1, under review) for the Nova Sustainable Fuels Renewable Energy Park in Guysborough County—targeting sustainable aviation fuel (SAF) and green methanol using biomass and renewable energy; registration Oct 29, 2025 with public comment open to Dec 8, 2025.

• Ocean Supercluster’s $7.2M Microbial Protein for Sustainable Aquaculture project led by DeNova, with the Verschuren Centre (Sydney) and Neptune (Dartmouth)—demonstrating the lab‑to‑plant pipeline in action.

• Province and ACOA funding to Neptune BioInnovation Centre (Dartmouth) to build a first‑of‑its‑kind, multi‑user CMO and precision‑fermentation hub at commercial scale—projected job creation and GDP gains while strengthening domestic supply chains.

• Ledwidge Lumber and Vyertta Renewables’ biofuels project: environmental approval secured and advancing to the next development stages—strengthening Nova Scotia’s residues‑to‑fuels pathway and local value‑add.

We’re already seeing early movers. Atlantic Canada’s first integrated mass-timber manufacturing capacity is taking root, creating skilled jobs and a regional supply for faster, lower-carbon building. Modernized mills in Elmsdale and at Ledwidge are pairing productivity upgrades with residue-to-energy and engineered-wood opportunities. The Port Hawkesbury industrial complex offers deep-water access, rail, on-site utilities, and excess steam—ideal for co-located bioproducts or district-energy customers. And the Verschuren Centre’s pilot-to-demo capabilities de-risk bioproduct and process-innovation scale-up here at home.

Our commitment is to move from policy to purchase orders. In the coming weeks we will: map a first wave of bioheat/CHP and clean-fuels sites to the CT-ITC/CE-ITC + Canada Growth Fund/Infrastructure Bank stack and publish standard term sheets and RFP templates; table a Nova Scotia–focused Clean Fuel Regulations submission on residue eligibility, co-processing crediting, and service standards; publish a Buy-Canadian playbook that documents domestic-content pathways; convene producers, designers, and builders to align mass-timber capacity with demand; and report quarterly on projects advanced, CO₂e avoided, clean heat/power deployed, jobs supported (including Indigenous partnerships), and dollars leveraged.

“By improving after-tax returns and procurement certainty, Budget 2025 shortens timelines and lowers risk. That’s exactly what Nova Scotia projects needed to move from spreadsheets to signed contracts.” — Royden Trainor, Executive Director, GreenspringBio Innovation

Finally, our thanks. Greenspring is grateful for the strategic support and partnership of Forest Nova Scotia, and of the many engaged players across the sector. Together with our ecosystem partners, we will continue to advance the practical policy and regulatory changes that are critical to securing economic, social, and environmental opportunity for Nova Scotia—helping the province move not only from have-not to have, but from follower to leader.

Appendix: References

• Forest Nova Scotia. “Forestry Generates $1.8 Billion in Economic Impact (2022).” Gardner Pinfold analysis summary.

• Government of Nova Scotia (DNRR). Forest sector GDP and exports—provincial statistics and addenda.

• FPAC. “Forest Sector Measures in Budget 2025.” (PDF).

• Advanced Biofuels Canada—Budget 2025 reaction (production incentive).

• Canadian Renewable Energy Association—Budget 2025 statement (clean power & investment signals).

• Pembina Institute—Budget 2025 analysis (climate competitiveness).

• Canadian Climate Institute—commentary on Climate Competitiveness Strategy.

• Public Services and Procurement Canada—“Buy Canadian” procurement approach (policy notice).

• ACOA news release: Establishing Canada’s first large-scale bioinnovation centre (Mar 20, 2025).

• Province of Nova Scotia news release: Province invests in Canada’s first-of-its-kind Bioinnovation Centre (Apr 22, 2025).

• Life Sciences Nova Scotia: Establishing Canada’s first large-scale bioinnovation centre (Mar 25, 2025).

• Verschuren Centre – What We Do (facility characteristics and services).

• Invest Nova Scotia: Service Provider Profile – Verschuren Centre (pilot scale and marine extraction lines).

• ACOA news release: Supports clean tech growth in Cape Breton (capacity increase).

• Nova Sustainable Fuels Renewable Energy Park – Environmental Assessment Registered (Class 1, Oct 29, 2025).

• Nova Sustainable Fuels project website (EA registration and project overview).

• Canada’s Ocean Supercluster: $7.2M Microbial Protein for Sustainable Aquaculture (DeNova + Verschuren Centre + Neptune).

• We Are Aquaculture: coverage of the Ocean Supercluster project announcement (Jun 13, 2025).

• Ledwidge Lumber & Viterra Renewables—biofuels project environmental approval (company statements / NS ECC registry).

• Greenspring Press Release: Budget 2025—Practical Signals for Nova Scotia Projects (Release.docx).
  

This guest article was written by Royden Trainor, Executive Director of GreenspringBio Innovation.