The Canadian federal government has announced up to $50 million in conditional funding to establish a digital forestry innovation centre in New Brunswick, aiming to improve efficiency and competitiveness across Canada’s forest products industry.

Announced on October 14 by Energy and Natural Resources Minister Tim Hodgson, the proposed Strategic Innovation Centre in Digital Forestry will be led by the Northern Hardwoods Research Institute in collaboration with ResearchNB. The project has an estimated total value of $86 million.

The centre plans to use artificial intelligence, digital mapping and virtual forest modelling to help businesses identify available wood resources, track timber through the supply chain and match fibre supplies with the needs of mills and manufacturers. The tools could also help assess wildfire and pest risks and improve harvesting and transportation planning.

Canada’s forestry sector faces pressure from changing wood supplies, rising operating costs, climate impacts and U.S. tariffs. The federal government says the industry supports nearly 200,000 jobs nationwide and contributed $23.5 billion to Canada’s GDP in 2024.

The funding is conditional, pending project approval and final due diligence. If implemented successfully, the centre could provide a model for other Canadian forestry regions seeking to modernize operations, reduce waste and strengthen domestic manufacturing.