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Ottawa Commits Up to $50 Million to Digital Forestry Innovation Centre in New Brunswick
Federal Energy and Natural Resources Minister Tim Hodgson announced an investment of up to $50 million for the Strategic Innovation Centre in Digital Forestry in New Brunswick, using an AI-powered digital twin of the province's forests to predict wildfires and pest outbreaks amid U.S. tariffs and climate pressures.
Why it matters
Canada's forest sector is being hit by tightening supply, rising costs, low pulp prices and U.S. tariffs. This is Ottawa's first major AI-centred forestry technology investment this year, with a total project value of about $86 million, held up by the minister as a model for other regions.
The project
On October 13 in Mactaquac, N.B., federal Energy and Natural Resources Minister Tim Hodgson announced Ottawa would invest up to $50 million to establish the New Brunswick Strategic Innovation Centre in Digital Forestry. The initiative is led by the Northern Hardwoods Research Institute in collaboration with ResearchNB, with a total estimated value of $86 million. The federal funding is conditional on the project's final approval.
What the digital twin does
ResearchNB says the centre will build a digital twin of New Brunswick's forests to predict the locations of wildfires and pest infestations, alongside technology to cut operating costs. Natural Resources Canada says the centre could become a model for other regions. Hodgson added that the government is working on a national forest-sector strategy to create the conditions for more initiatives like it.
Industry backdrop
The forest sector supports nearly 200,000 jobs, underpins 300 rural, remote and Indigenous communities, and contributed $23.5 billion to Canada's GDP in 2024, according to official figures. Hodgson stressed the sector faces serious pressure from unjustified U.S. tariffs and climate change, saying Ottawa stands with industry and workers to adapt and remain competitive.
Sources
Natural Resources Canada official release (Oct 14, 2026); The Canadian Press (Eli Ridder, Oct 14, 2026).
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