The federal government is providing about $20 million in funding to support British Columbia’s forestry sector, part of Ottawa’s effort to bolster the economy amid the Canada-U. S. trade war.
In what could mark a turning point for the Fort Nelson economy, a long-awaited pellet mill project is poised for significant progress with a $250,000 funding injection.
The Fort Nelson First Nation is set to receive the funding, which will bolster its partnership with Peak Renewables. Together, they aim to convert an idle former Canfor sawmill near reserve into a large-scale wood pellet plant.
However, the road to this point has been anything but smooth. The region, historically reliant on its resource sector, has faced a number of challenges in bringing the project to fruition.
In November 2020, the Fort Nelson First Nation extended a $1 million interest-free loan to Peak Renewables to advance the project. Originally, the pellet mill was slated to begin operations in early 2022. Since then, no new timeline has been provided as to when the mill may become operational.
Energy Minister Jonathan Wilkinson says it’s more important than ever to support the sector, which is subject to American duties on softwood lumber and now faces the additional threat of steep tariffs from U.S. President Donald Trump.
A statement from Natural Resources Canada says the funding will support 67 projects to help boost the competitiveness and resilience of the sector.
About $11.3 million will flow through the Investments in Forest Industry Transformation program for six projects that are adopting new technologies and focusing on product innovation to diversify revenue.
More than $7 million will go through the Indigenous Forestry Initiative to 50 projects advancing economic development opportunities.
Another $1.6 million will go to nine projects promoting the commercialization of wood-based products in the construction sector, while $600,000 will go to projects aimed at strengthening international partnerships and decreasing market barriers.
“Canada’s forest industry is vital not only to our economy but also to the global market,” Wilkinson says in the statement. “Protecting this key natural resource is essential to securing the future of our economy and ensuring growth, resilience and sustainability, both at home and abroad.”
Ottawa has also announced $5 million in funding for four projects in B.C. and one in Yukon aimed at helping laid-off workers from the forestry and mining sectors.
A statement from Employment and Social Development Canada says the money will flow through the Canada Retraining and Opportunities Initiative.
It says the projects will help displaced workers transition into new jobs.
This report contains files by The Canadian Press first published on March 19, 2025.